Question: using first picture, i just need help finishing out my table and cash flow Tell us about your product Imagine, as a corporation, you're launching


Tell us about your product Imagine, as a corporation, you're launching a new product line. You've done extensive marketing research and know this product will be highly successful. Fill in the following details: Biodegradable Soda Bottles Retail cost/item: $7.00 Variable cost/item (how much it costs to produce): $3.50 Fixed costs/year: $7000/year (you can make up this #) Cost of new equipment to make new product (CF): $32,000 Depreciation per year of new equipment: $5,000 a year Corporate Tax Rate: 21 percent. Required rate of return: 15% Create a pro forma income statement and determine net income and then operating cash flow / year. Based on the cash flows of your project, should you launch your product? Notes Product Name: Projected Total Cash Flows Project Year 0 OCF $ ANWC -$ Capital -$ Spending CFFA -$ $ $ Now calculate NPV based on cash flows and required rate of return NPV of project = $ S 1 2 $ $ 3 Pro Forma Income Statement Your project: Biodegradable Soda Bottles Sales (5000 of units @ $7 per unit) $35000 Variable Costs ($3.5 per unit) $17500 Fixed Costs $7000 Depreciation $ 5000 EBIT $ Taxes (34%) Net Income Operating Cash Flow = NI + Dep=
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