Kauai Tools Inc. is planning to invest in new manufacturing equipment to make a new...
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Kauai Tools Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The new garden tool is expected to generate additional annual sales of units at $ each. The new manufacturing equipment will cost $ and is expected to have a year life and a $ residual value. Selling expenses related to the new product are expected to be of sales revenue. The cost to manufacture the product includes the following on a perunit basis: Line Item Description Cost Direct labor $ Direct materials Fixed factory overheaddepreciation Variable factory overhead Total $ Determine the net cash flows for the first year of the project, Years and for the last year of the project. Use the minus sign to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answers to the nearest dollar.
Kauai Tools Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The new garden tool is expected to generate additional annual sales of units at $ each. The new manufacturing equipment will cost $ and is expected to have a year life and a $ residual value. Selling expenses related to the new product are expected to be of sales revenue. The cost to manufacture the product includes the following on a perunit basis:
Line Item Description Cost
Direct labor $
Direct materials
Fixed factory overheaddepreciation
Variable factory overhead
Total $
Determine the net cash flows for the first year of the project, Years and for the last year of the project. Use the minus sign to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answers to the nearest dollar.
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