2. Relevant Cash Flows

I did all the calculations but I'm stuck on the last part (Why?). How do I explain the end answer? Thank you.

2) New sales of portable campers= 2500019000=475000000 Increased sales of the motor home line = 2700103000=278100000 Erosion of luxury motor coach sales = 1300155000=201500000 Annual sales = 475000000+278100000201500000= produce gurden tools. The company bought 1,300 units per year. What is the amount to use as the annual year ago for $2.8 million in anticipation of usiny. . sales figure when evaluating this project? Why? Warehouse and distribution site, but the company has since 3. Calculating Projected Net Income [LO1] A proposed neve. decided to rent these facilities from a competitor instead, If investment has projected sales of $515,000. Variable coats are the land tvere sold today, the company would net $3.2 million. 36 percint 4 fis, and fixed costs are $173,000; depreciation The company wants to build its new manufacturing plant on is $46,000. Prepare a pro formn income statement assuming a this land; the plant will cost $14.3 million to build, and the tax rate of 21 percent. What is the projected net income? site requires $825,000 worth of grading before it is suitable 4. Calculating OCF [LO1] Consider the following income for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project? Why? 2. Relevant Cash Flows [LO1] Winnebagel Corp, currently sells 20,000 motor homes per year at $103,000 each and 14,000 luxury motor coaches per year at $155,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 25,000 of these campers per year at $19,000 each. An independent consultant has Fill in the missing numbers and then calculate the OCF. What determined that if the company introduces the new campers, is the deprecintion tax shield? it should boost the sales of its existing motor homes by 2,700 5. OCF from Several Approaches [LOX] A proposed wew project units per year and reduce the sales of its motor coaches by has projected sales of $215,000, cost: depreciation of $25,300. The tax rate is: parcent fulate