A beauty product company is developing a new fragrance named Happy Forever. There is a probability of
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Question:
A beauty product company is developing a new fragrance named Happy Forever. There is a probability of
that consumers will love Happy Forever, and in this case, annual sales will be
million bottles; a probability of
that consumers will find the smell acceptable and annual sales will be
bottles; and a probability of
that consumers will find the smell unpleasant and annual sales will be only
bottles The selling price is $
and the variable cost is $
per bottle. Fixed production costs will be $
:
million per year, and depreciation will be $
million. Assume that the marginal tax rate is
percent What are the expected annual incremental after
tax free cash flows from the new fragrance?
Round answer to
decimal places, e
g
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