Cusic Music Company is considering the sale of a new sound board used in recording studios. The
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Cusic Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $24,000, and the company expects to sell 1,570 per year. The company currently sells 1,920 units of its existing model per year. If the new model is introduced, sales of the existing model will fall to 1,590 units per year. The old board retails for $22,400. Variable costs are 52 percent of sales, depreciation on the equipment to produce the new board will be $1,455,000 per year, and fixed costs are $3,075,000 per year. If the tax rate is 22 percent, what is the annual OCF for the project? (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g., 32.) ok OCF t
Related Book For
Essentials Of Corporate Finance
ISBN: 9780073405131
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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