Question: Please type it out do not hand write it 1A) Mountain Tops Inc. currently sells 9,000 motor homes per year at $60,000 each. The company
Please type it out do not hand write it
1A)
Mountain Tops Inc. currently sells 9,000 motor homes per year at $60,000 each. The company wants to introduce a new portable camper to expand its product lines; upon the introduction, it expects to sell 15,000 of these campers per year at $ 12,000 each. However, due to this new product introduction, the sales of its motor homes would decline by 2,800 units per year. What should be the amount to use as the annual sales figure when evaluating this camper project?
1B)
Kelly's Corner Bakery purchased a lot in Columbus City five years ago at a cost of $740,000. Today, that lot has a market value of $940,000. At the time of the purchase, the company spent $55,000 to level the lot and another $5,800 to install storm drains. The company now wants to build a new facility on that site. The building cost is estimated at $1,250,000. The amount should be used as the initial cash outflow for this project is $____. Put a positive dollar amount, and round it to a whole dollar, e.g., 123456.
1C)
Jefferson & Sons is evaluating a project that will increase annual sales by $560,000 and annual costs by $250,000. The project will initially require $120,000 in fixed assets that will be depreciated straight-line to a zero book value over the 5 year life of the project. The applicable tax rate is 40 percent. The annual operating cash flow for this project is $___. Round it to a whole dollar.
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