What is the annual ocf for the project

Reference no: EM13268987

Rolston Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $25,700, and the company expects to sell 1,420 per year. The company currently sells 1,920 units of its existing model per year. If the new model is introduced, sales of the existing model will fall to 1,740 units per year. The old board retails for $21,600. Variable costs are 57 percent of sales, depreciation on the equipment to produce the new board will be $1,370,000 per year, and fixed costs are $1,270,000 per year. Required: If the tax rate is 35 percent, what is the annual OCF for the project?

Reference no: EM13268987

Questions Cloud

Evolution of first generation data models, : Your response should include the evolution of 1st generation data models, the relevance of seminal work that led to the 2nd generation data model, a discussion of higher order semantics in the relational data model, and an explanation of the related ..

Compute the angular acceleration of the wheel : A string is wrapped around a wheel of radius 0.4 m and moment of inertia 25 kg-m2. If the string is pulled with a force of 60 N, what is the angular acceleration of the wheel

Use to evaluate the equipment purchase : Divedends are expected to grow at a rate of 5.2% per year into the indefinite future. If the firm tax rate is 30% what discount rate should you use to evaluate the equipment purchase

Oracle instance and transaction : Illustrate the architecture of the Oracle instance, including all memory structures, processes, and associated physical files. Explain how transactions are processed by the Oracle DBMS.

What is the annual ocf for the project : depreciation on the equipment to produce the new board will be $1,370,000 per year, and fixed costs are $1,270,000 per year. Required: If the tax rate is 35 percent, what is the annual OCF for the project?

What is the change of entropy of the steam : An exhaust tube from a steam generator is submerged in a large container of cool water. what is the change of entropy (in J/deg) of the steam

Determine the combined costs of two circuits : Design the minimum-cost circuit and compare its cost with combined costs of two circuits that implement f and g separately. Assume that the input variables are available in both uncomplemented and complemented forms.

What is the representative investor average degree : The expected rate of return on the market portfolio is 8.50% and the risk-free rate of return is 2.50%. The standard deviation of the market portfolio is 24%. What is the representative investor's average degree of risk aversion?

Calculate the work function of the material : When a certain photoelectric material is illuminated with red light (?=715) and then blue light (?=400), calculate the work function of the material

User Account

All Pages