Question: You must analyze a potential new product - - a caulking compound that Cory Materials' R&D people developed for use in the residential construction industry.

You must analyze a potential new product--a caulking compound that Cory Materials' R&D people developed for use in the
residential construction industry. Cory's marketing manager thinks the company can sell 115,000 tubes per year at a price
of $3.25 each for 3 years, after which the product will be obsolete. The purchase price of the required equipment, including
shipping and installation costs, is $175,000, and the equipment is eligible for 100% bonus depreciation at the time of
purchase. Current assets (receivables and inventories) would increase by $35,000, while current liabilities (accounts payable
and accruals) would rise by $15,000. Variable cost per unit is $1.95, and fixed costs would be $70,000 per year. When
production ceases after 3 years, the equipment should have a market value of $15,000. Cory's tax rate is 25%, and it uses a 10% WACC for average-risk projects.
Please show how to solve the blanks, also check the ones I have filled in to make sure I did it correctly.
 You must analyze a potential new product--a caulking compound that Cory

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