The Johnny Pickles Brewing Company has been successful as a small craft microbrewery with a focus...
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The Johnny Pickles Brewing Company has been successful as a small craft microbrewery with a focus on distributing its products to bars and restaurants. They are considering a bottling line that will allow them to start distributing to grocery and party stores. The equipment will cost $79,505 to purchase. It's expected that additional sales will be $25,680 per year while variable expenses are expected to increase $4,930 annually. The equipment is expected to last 5 years and will need a one time overhaul in year 3 that will cost $3,315. The Johnny Pickles Brewing Company uses a discount rate of 10% when deciding to accept a project. What is the projected undiscounted cash flow for the bottling line in year 3? Round your answer to the whole dollar. The Johnny Pickles Brewing Company has been successful as a small craft microbrewery with a focus on distributing its products to bars and restaurants. They are considering a bottling line that will allow them to start distributing to grocery and party stores. The equipment will cost $79,505 to purchase. It's expected that additional sales will be $25,680 per year while variable expenses are expected to increase $4,930 annually. The equipment is expected to last 5 years and will need a one time overhaul in year 3 that will cost $3,315. The Johnny Pickles Brewing Company uses a discount rate of 10% when deciding to accept a project. What is the projected undiscounted cash flow for the bottling line in year 3? Round your answer to the whole dollar.
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Business Ethics Ethical Decision Making and Cases
ISBN: 978-1305500846
11th Edition
Authors: O. C. Ferrell
Posted Date:
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