Hershey is considering a new candy that will generate $30 million in sales and $20 million in
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Hershey is considering a new candy that will generate $30 million in sales and $20 million in cost of goods sold each year for the next 5 years (does not include depreciation expense). They will need a new machine that costs $20 million dollars. They will depreciate the machine to a zero book value using straight-line depreciation over 5 years. The machine can be sold at the end of the 5 years for $2,000,000. The tax rate is 40%. Determine the annual free cash flows.
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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