Considering the sale of new sound board

Assignment Help Financial Management

Reference no: EM131519754

Meld Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $28,621, and the company expects to sell 1,577 units per year. The company currently sells 2,087 units of its existing model per year. If the new model is introduced, sales of the existing model will fall to 1,808 units per year. The old board retails for $34,641. Variable costs are 47 percent of sales, depreciation on the equipment to produce the new board will be $1.2 million per year, and fixed costs are $1.28 million per year. If the tax rate is 36 percent, what is the annual OCF for the project?

Reference no: EM131519754

Questions Cloud

Will this cause any of jacksons accounts to be misstated : Jackson Rental receives its September utility bill of $320 on September 30 but does not pay the bill until October 10. Jackson's accountant records the utility.

How would a psychoanalyst explain what is happening here : How would a psychoanalyst explain what is happening here? How might a psychoanalyst explain Judy's high standards and feelings of worthlessness and shame

Will any accounts be misstated : At the end of May, Robertson Corporation has provided services to customers, but it has not yet billed these customers nor have any of them paid.

What is meant by user time in terms of cpu usage : What is the size of the cache on your CPU? What is meant by "User Time" in terms of CPU usage? What is meant by "Kernel" or "System" time in terms of CPU usage?

Considering the sale of new sound board : Meld Music Company is considering the sale of a new sound board used in recording studios.

Read becoming baptist and aint gwine lay my ligion down : Read Becoming Baptist and Ain't Gwine Lay My ‘Ligion Down prior to church visitation. It is very important that you read the articles first.

Money call option on roslin stock : The? Black-Scholes value of a? one-year, at-the-money call option on Roslin stock is:

What is the purpose of the adjusted trial balance : At the end of the period, Sanders Company reports the following amounts: Assets = $12,000; Liabilities = $8,000; Revenues = $5,000; Expenses = $3,000.

What is aftertax cash flow from the sale of this asset : If the relevant tax rate is 33 percent, what is the aftertax cash flow from the sale of this asset?

User Account

All Pages