A company sells Tidbits to consumers at a price of $92 per unit. The costs to produce Tidbits is $33 per unit. The company will sell 14,000 Tidbits to consumers each year. The fixed costs incurred each year will be $160,000. There is an initial investment to produce the goods of $3,800,000 which will be depreciated straight line over 19 year life of the investment to a salvage value of $0. The opportunity cost of capital is 14% and the tax rate is 29%. What is operating cash flow each year? 530860 Correct response: 530,860±10 Click "Verify" to proceed to the next part of the question. Using an operating cash flow of 530,860 each year, what is the NPV of this project? Number
A company sells Tidbits to consumers at a price of $92 per unit. The costs to produce Tidbits is $33 per unit. The company will sell 14,000 Tidbits to consumers each year. The fixed costs incurred each year will be $160,000. There is an initial investment to produce the goods of $3,800,000 which will be depreciated straight line over 19 year life of the investment to a salvage value of $0. The opportunity cost of capital is 14% and the tax rate is 29%. What is operating cash flow each year? 530860 Correct response: 530,860±10 Click "Verify" to proceed to the next part of the question. Using an operating cash flow of 530,860 each year, what is the NPV of this project? Number
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A company sells Tidbits to consumers at a price of $92 per unit. The costs to produce Tidbits is $33 per unit. The company will
sell 14,000 Tidbits to consumers each year. The fixed costs incurred each year will be $160,000. There is an initial investment to
produce the goods of $3,800,000 which will be depreciated straight line over 19 year life of the investment to a salvage value of
$0. The opportunity cost of capital is 14% and the tax rate is 29%.
What is operating cash flow each year?
530860
Correct response: 530,860±10
Click "Verify" to proceed to the next part of the question.
Using an operating cash flow of 530,860 each year, what is the NPV of this project?
Number
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