Essay Writing Service

employment law

Manufacturing company 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 a depreciated straight line over the next 5 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 the land for the project. The firm’s marginal tax rate is 35%, and its cost of capital is 10%. A. Prepare a statement showing the incremental cash flows for this project over an 8-year period. B. Calculate the payback period (P/B) and the net present value (NPV) for the project. Answer the following questions based on your P/B and NPV calculations: 1. Do you think the project should be accepted? Why? Assume the company has a P/B (payback) policy of not accepting projects with life of over 3 years. 2. If the project required additional investment in land and building, how would this affect your decision? Explain.

Give us your instructions.
Select the type of service you need: writing, calculations, or programming. We’ve created an intuitive order form that tells you what information to enter and where, so make sure to fill out each required field. Also, make your requirements as specific as possible. Don’t rush! Take your time and explain everything in detail how it works.

Proceed to checkout and enter your credit card details or PayPal login, how to pay. Follow the payment provider’s instructions to confirm the transaction.
Now your order is in our system! We’ll start processing it right away.

Need help with a similar question?

Place an order and we will get it done

How It Works

Fast, Secure, and Confidential!

Fill in the Order Form

Submit your instructions through our small order form online

Make a payment

The price is based on these factors: Academic level, Number of pages, Urgency, Type of paper needed

We choose the most suitable writer

We choose the most suitable writer.

i

Get your assignment before the deadline

The final version will completely correspond your instructions.
error: