Business, 24.11.2020 19:10 aletadaboss

TexMex Food Company is considering a new salsa whose data are shown below. The equipment to be used would be depreciated by the straight-line method over its 3-year life and would have a zero salvage value, and no change in net operating working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. However, this project would compete with other TexMex products and would reduce their pre-tax annual cash flows. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.)WACC 10.0%Pre-tax cash flow reduction for other products (cannibalization) -$5,000Investment cost (depreciable basis) $80,000Straight-line depreciation rate 33.333%Annual sales revenues $67,500Annual operating costs (excl. depreciation) -$25,000Tax rate 35.0%a. $3,636b. $3,828c. $4,019d. $4,220e. $4,431

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 07:00

Ireally need with these questions.6. what level of job security do athletes and sports competitors have? why do you think this is? 22. do you think a musician has more job security than an athlete? explain.37. what is the difference between a public relations specialist and a marketing professional? 47. do you think gender inequalities still exist in the sports industry? explain.50. what are the advantages and disadvantages of labor unions? do you think labor unions are fair to employers? how might they be taken advantage of?

Answers: 1

Answer

Business, 22.06.2019 17:00

Serious question, which is preferred in a business? pp or poopoo?

Answers: 1

Answer

Business, 22.06.2019 19:10

After the price floor is instituted, the chairman of productions office buys up any barrels of gosum berries that the producers are not able to sell. with the price floor, the producers sell 300 barrels per month to consumers, but the producers, at this high price floor, produce 700 barrels per month. how much producer surplus is created with the price floor? show your calculations.

Answers: 2

Answer

Business, 22.06.2019 20:50

Which of the statements best describes why the aggregate demand curve is downward sloping? an increase in the aggregate price level causes consumer and investment spending to fall, because consumer purchasing power decreases and money demand increases. as the aggregate price level increases, consumer expectations about the future change. as the aggregate price level decreases, the stock of existing physical capital increases. as a good's price increases, holding all else constant, the good's quantity demanded decreases.

Answers: 2

Answer

You know the right answer?

TexMex Food Company is considering a new salsa whose data are shown below. The equipment to be used...

Questions