Question
You are a financial manager of Blueberries.com - a multinational public company that sells blueberries online. You are evaluating a purchase of new servers to
You are a financial manager of Blueberries.com - a multinational public company that sells blueberries online. You are evaluating a purchase of new servers to increase capacity and improve user experience. The servers cost $12.5 million. They will be good for 5 years and will be depreciated straight-line to 0. Estimated additional sales from this project are 3,540,000 pounds of blueberry at $6/pound. Variable costs per pound are $2. The company corporate tax rate is 30%. The project is associated with $3.5 million additional salaries. Other additional fixed costs are $2.2 million. Calculate cash flow flow assets for blueberries.com at year 4. In your answer, please, provide just number with 2 decimals (if necessary). No dollar signs or comas. For example, one million fifty five dollars should be recorded as 1000055.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started