Sale of new sound board used in recording studios

Assignment Help Financial Management

Reference no: EM131501034

Rolston Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $27,000, and the company expects to sell 1, 550 per year. The company currently sells 2, 050 units of its existing model per year. If the new model is introduced, sales of the existing model will fall to 1.870 units per year. The old board retails for $22, 900. Variable costs are 55 percent of sales, depreciation on the equipment to produce the new board will be $1, 500,000 per year, and fixed costs are $1, 400,000 per year.

If the tax rate is 38 percent, what is the annual OCF for the project? (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g., 32.)

OCF $

Reference no: EM131501034

Questions Cloud

Provide an overview of the case : Provide an overview of the case and discuss which classification the case would fall in (medical treatment, temporary disability, permanent disability etc.).

Justify the reason they were a good or bad leader : The two leaders are Fidel Castro (bad) and Nelson Mendela (good). Provide three separate reasons (with referenced examples) to justify the reason they were a good, or bad leader

Did benchmark benefit from global expansion : Did benchmark benefit from global expansion? If so, how? If not, why? Were there risks associated with the globalization? How were these risks minimized?

Analyze the impact of the nurses role in clinical outcomes : Analyze the core measures and standards for nursing practice that promote patient safety and quality of care outcomes.

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

Which is best example of strong conclusion in a presentation : Which is the best example of a strong conclusion in a presentation? Studies have shown that bottled water is not any safer than tap water in most communities

Self-efficacy in treatment group : You found that your intervention statistically significantly increased self-efficacy in your treatment group compared to your control; p-value

How does level of education affect income : Conduct some internet research. How does level of education affect income? How does this information affect your plans for your education and career?

Prepare report on analyzing and evaluating the green tourism : Prepare report on analyzing and evaluating the green practices (tourism) of any specific business environment organization or tourism/hospitality company

User Account

All Pages