Question
The snoopy Motorcycle company is considerinf an inverstment of $4000 in a new motorcycle. The expect to increase sales in each of the years three
The snoopy Motorcycle company is considerinf an inverstment of $4000 in a new motorcycle. The expect to increase sales in each of the years three years by $300 while increase expenses by $ 100 each year.The Firt sales wiil be $400 and expenses will be $200.They expect that they can carve out a niche in the marketplaceno for this new motorcycle for five year,after which thet intend to cease production onthe motorcycle and sell the manuafacturing equipment for $1000. Assume the equipment is depreciated at a constant rate of operation. Snoopy tax rate is 25%
What is the net cash flow for each of the motorcycle five year life
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