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Q: financial management cash flow statement ( No Answer,   1 Comment )
Question  
Subject: financial management cash flow statement
Category: Business and Money > Finance
Asked by: lynnfol-ga
List Price: $5.00
Posted: 23 May 2006 18:31 PDT
Expires: 22 Jun 2006 18:31 PDT
Question ID: 731840
Superior Manufacturing is thinking of launching a new product.  The
company expects to sell $950,000 of the new product in the first year
and $1,500,000 each year thereafter.  Direct costs including labor and
materials will be 55% of sales.  Indirect incremental costs are
estimated at $80,000 a year.  The project requires a new plant that
will cost a total of $1,000,000, which will be depreciated straight
line over the next five years. The new line will also require an
additional net investment in inventory and receivables in the amount
of $200,000.  Assume there is no need for additional investment in
building and land for the project. The firm's marginal tax rate is
35%, and its cost of capital is 10%.   Based on this information you
are to complete the following tasks.

Prepare a statement showing the incremental cash flows for this
project over an 8-year period.
Answer  
There is no answer at this time.

Comments  
Subject: Re: financial management cash flow statement
From: steelgrid-ga on 10 Jun 2006 16:23 PDT
 
put a little more moolah into the pot and maybe you might get an
answer.  At least this is what I have noticed with others who have
posted for extra help with class work

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