Gardeneer inc is planning to invest 184000 in a new garden

Reference no: EM13598066

Gardeneer Inc. is planning to invest $184,000 in a new garden tool that is expected to generate additional sales of 7,500 units at $38 each. The $184,000 investment includes $54,000 for initial launch-related expenses and $130,000 for equipment that has a 10-year life and a $17,500 residual value. Selling expenses related to the new product are expected to be 6% of sales revenue. The cost to manufacture the product includes the following per-unit costs:

Determine the net cash flows for the first year of the project, years 2-9, and for the last year of the project.

Insert cash outflows in parentheses. For example an outflow of 45,000 would be entered as (45000).

Year 1 Years 2 - 9 Last Year
Initial investment $
Operating cash flows:
Annual revenues $ $ $
Selling expenses $ $ $
Cost to manufacture $ $ $
Net operating cash flows $ $ $
Total for year 1 $
Total for years 2-9 $
Residual value $
Total for last year $

Reference no: EM13598066

Questions Cloud

How do the percent of revenue method and the percent of : how do the percent of revenue method and the percent of receivables method to estimate uncollectible accounts expense

On sept 25 2010 a hurricane destroyed the work in process : on sept. 25 2010 a hurricane destroyed the work in process inventory of biloxi corporation. at the time the company was

Harris fabrics computes its predetermined overhead rate : harris fabrics computes its predetermined overhead rate annually on the basis of direct labor hours. at the beginning

Luthan company uses a predetermined overhead rate of 2230 : luthan company uses a predetermined overhead rate of 22.30 per direct labor-hour. this predetermined rate was based on

Gardeneer inc is planning to invest 184000 in a new garden : gardeneer inc. is planning to invest 184000 in a new garden tool that is expected to generate additional sales of 7500

What is the amount of the discount and up to what date must : 1. which of the following is not a characteristic of a corporation? corporations are organized as a separate legal

The data relating to units shipped and total shipping : the data relating to units shipped and total shipping expense have been assembled by archer company a wholesaler of

Bank collected 127890 note for family in july plus interest : the following information pertains to family video company.1. cash balance per bank july 31 10320.72.2. july bank

Carnival corporation has recently placed into service some : carnival corporation has recently placed into service some of the largest cruise ships in the world. one of these ships

User Account

All Pages