Winnebagel Corp. currently sells 33,000 motor homes per year at $49,500 each, and 13,200 luxury motor coaches per year at $93,500 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 20,900 of these campers per year at $13,200 each. An independent consultant has determined that if the company introduces the new campers, it should boost the sales of its existing motor homes by 4,950 units per year, and reduce the sales of its motor coaches by 990 units per year.

What is the amount to use as the annual sales figure when evaluating this project?

Multiple Choice

• $275,880,000

• $449,757,000

• $406,923,000

• $428,340,000

• $613,470,000

Consider the following income statement:

Sales	$ 1,021,888
Costs	664,832
Depreciation	151,200
Taxes	23 %

Calculate the EBIT.

Calculate the net income.

Calculate the OCF.

What is the depreciation tax shield?

Consider an asset that costs $290,400 and is depreciated straight-line to zero over its 12-year tax life. The asset is to be used in a 5-year project; at the end of the project, the asset can be sold for $36,300.

If the relevant tax rate is 24 percent, what is the aftertax cash flow from the sale of this asset?

Multiple Choice

• $532,896.00

• $27,588.00

• $68,244.00

• $64,831.80

• $71,656.20