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Finance

New Product Launch

Expected sales first year $900,000
Each year after $1,500,000
Direct costs (including labor and material) will be 55% of sales
Indirect incremental costs $80,000 yearly
Have a 1,000,000 building cost, needs to be depreciated straight line over five years.
Requires an additional $100,000 net investment in inventory and receivables
Tax rate is 40%
Cost of capital 10%

Need a statement showing incremental cash flows over an eight year period.

Need a computed payback period

NPV for the project would be nice as well (Optional)

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9291919

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