Question: Your answer is incorrect. A beauty product company is developing a new fragrance named Happy Forever. There is a probability of 0 . 5 0
Your answer is incorrect.
A beauty product company is developing a new fragrance named Happy Forever. There is a probability of that consumers will love Happy Forever, and in this case, annual sales will be million bottles; a probability of that consumers will find the smell acceptable and annual sales will be bottles; and a probability of that consumers will find the smell unpleasant and annual sales will be only bottles. The selling price is $ and the variable cost is $ per bottle. Fixed production costs will be $ million per year, and depreciation will be $ million. Assume that the marginal tax rate is percent. What are the expected annual incremental aftertax free cash flows from the new fragrance? Round answer to decimal places, e
Annual incremental cash flows $
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