Question: a cuz Corp is considering introducing a new 90 flat screen television monitor for the consumer market. the company will have to purchase a new
a cuz Corp is considering introducing a new 90 flat screen television monitor for the consumer market. the company will have to purchase a new machine to produce screens. the machines invoice price would be $3000000 and was fully depreciated at the time of purchase. last year a market research study for the new product cost $1 million. the companys interest each year will be $350,000. because the new product line is similar to another xyzs existing product the new screens are expected to reduce the sale's off the companys current large screen tvs by $650,000 per year. the screen is expected to generate sales revenue of $6,000,000 per year. each tear the operating cost's ( not including depreciation) are expected to be $2,540,000. the company's tax rate is 25%. what is the annual expected incremental operating cash flow?
a) $2,332,500
b) 2,378,000
c) 2,595,000
d) 2,107.500
e) 1,845,000
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