Business
Business, 19.12.2019 01:31, zaiah329

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

answer
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 00:00, jboii11
Choose the list of the best uses for word processing software. lists, resumes, writing a book, and payroll data letters to your friends, resumes, spreadsheets, and school papers resumes, cover letters, databases, and crossword puzzles book reports, letters to your friends, resumes, and contracts
Answers: 2
image
Business, 22.06.2019 01:10, ltawiah8393
Suppose someone wants to sell a piece of land for cash. the selling of a piece of land represents turning econ
Answers: 3
image
Business, 22.06.2019 09:30, emfranco1
Which are the best examples of costs that should be considered when creating a project budget?
Answers: 2
image
Business, 22.06.2019 09:40, leomessifanboy678
As related to a company completing the purchase to pay process, is there an accounting journal entry "behind the scenes" when xyz company pays for the goods within 10 days of the invoice (gross method is used for discounts and terms are 2/10 net 30) that updates the general ledger?
Answers: 3
Do you know the correct answer?
Texmex food company is considering a new salsa whose data are shown below. the equipment to be used...

Questions in other subjects: