Suppose the increased production capacity from the renovation is expected to erode revenue from P&G's North Carolina
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Suppose the increased production capacity from the renovation is expected to erode revenue from P&G's North Carolina plant by $400,000 in FY2023. The renovation will increase the gross margin of the Indiana plant from 8% to 10%. The gross margin of the North Carolina plant is 12.5%. P&G's corporate income tax rate is 23%. Net working capital investment is 5% of COGS. What is the incremental free cash flow from erosion in FY2023?
Related Book For
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
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