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Pathways Appliance Company is planning to Introduce a bullt-In blender to Its line of small home appllances. Annual sales of the blender are estlmated at 12,000 units at a price of $35 per unlt. Varlable manufacturing costs are estlmated at $15 per unit, Incremental fixed manufacturing costs (other than depreclation) at $60,000 annually, and incremental selling and general expenses relating to the blenders at $50,000 annually. To bulld the blenders, the company must Invest $240,000 in molds, patterns, and speclal equipment. Since the company expects to change the design of the blender every four years, this equipment will have a four-year service life with no salvage value. Depreclation will be computed on a stralght-Ine basis. All revenue and expenses other than depreclation will be recelved or pald In cash. The company's combined state and federal tax rate is 40 percent. Required: a. Prepare a schedule showing the estlmated annual net Income from the proposal to manufacture and sell the blenders. b. Compute the annual net cash flows expected from the proposal. c. Compute the following. Assume discounted at an annual rate of 15 percent. Use and 264 where necessary. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Prepare a schedule showing the estimated annual net income from the proposal to manufacture and sell the blenders. Pathways Appliance Company is planning to Introduce a bullt-In blender to Its IIne of small home appllances. Annual sales of the blender are estimated at 12,000 unlts at a price of $35 per unit. Varlable manufacturing costs are estlmated at $15 per unit, Incremental ixed manufacturing costs (other than depreclation) at $60,000 annually, and incremental selling and general expenses relating to the plenders at $50,000 annually. To bulld the blenders, the company must Invest $240,000 in molds, patterns, and speclal equipment. Since the company expects to change the design of the blender every four years, this equipment will have a four-year service life with no salvage value. Depreclation will be computed on a stralght-Ine basls. All revenue and expenses other than depreclation will be recelved or pald In cash. The company's combined state and federal tax rate is 40 percent. Required: 1. Prepare a schedule showing the estimated annual net income from the proposal to manufacture and sell the blenders. b. Compute the annual net cash flows expected from the proposal. c. Compute the following. Assume discounted at an annual rate of 15 percent. Use and 264 where necessary. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Compute the annual net cash flows expected from the proposal. Pathways Appliance Company is planning to Introduce a bult--In blender to Its line of small home appllances. Annual sales of the blender are estimated at 12,000 units at a price of $35 per unlt. Varlable manufacturing costs are estimated at $15 per unit, Incremental fixed manufacturing costs (other than depreclation) at $60,000 annually, and Incremental selling and general expenses relating to the blenders at $50,000 annually. To bulld the blenders, the company must Invest $240,000 in molds, patterns, and speclal equlpment. Since the company expects to change the design of the blender every four years, this equipment will have a four-year service life with no salvage value. Depreclation will be computed on a stralght-IIne basis. All revenue and expenses other than depreclation will be recelved or pald In cash. The company's combined state and federal tax rate is 40 percent. Required: a. Prepare a schedule showing the estimated annual net Income from the proposal to manufacture and sell the blenders. b. Compute the annual net cash flows expected from the proposal. c. Compute the following. Assume discounted at an annual rate of 15 percent. Use and 264 where necessary. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Compute the following. Assume discounted at an annual rate of 15 percent. Use Exhibits 26-3 and 26-4 where necessary. (Round your "PV factors" to 3 decimal places, payback period and the return on average investment answers to 1 decimal place.)

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