Max leonard, vice president of marketing for dysk computer, inc., must decide whether to introduce a mid-priced version of the firm's dc6900 minicomputer product line-the dc6900-x minicomputer. the dc6900-x would sell for $3,900, with unit variable costs of $1,800. projections made by an independent marketing research firm indicate that the dc6900-x would achieve a sales volume of 500,000 units next year, in its first year of commercialization. one-half of the first year's volume would come from competitors' minicomputers and market growth. however, a consumer research study indicates that 30 percent of the dc6900-x sales volume would come from the higher-priced dc6900-omega minicomputer, which sells for $5,900 (with unit variable costs of $2,200). another 20 percent of the dc6900-x sales volume would come from the economy-priced dc6900-alpha minicomputer priced at $2,500 (with unit variable costs of $1,200). the dc6900-omega unit volume is expected to be 400,000 units next year, and the dc6900-alplia is expected to achieve a 600,000-unit sales level. the fixed costs of launching the dc6900-x have been forecast to be $2 million during the first year of commercialization. if mr. leonard introduces the dc6900-x, what will be the total first-year change in profits for the firm?

Cardinal company is considering a project that would require a $2,725,000 investment in equipment with a useful life of five years. at the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. the company’s discount rate is 14%. the project would provide net operating income each year as follows: sales $2,867,000 variable expenses 1,125,000 contribution margin 1,742,000 fixed expenses: advertising, salaries, and other fixed out-of-pocket costs $706,000 depreciation 465,000 total fixed expenses 1,171,000 net operating income $571,000 1. which item(s) in the income statement shown above will not affect cash flows? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) (a)sales (b)variable expenses (c) advertising, salaries, and other fixed out-of-pocket costs expenses (d) depreciation expense 2. what are the project’s annual net cash inflows? 3.what is the present value of the project’s annual net cash inflows? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 4.what is the present value of the equipment’s salvage value at the end of five years? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 5.what is the project’s net present value? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.)