MGT 160 Homework 5

MGT 160 Homework 5 - MGT 160 Homework#5 Due Wednesday...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
MGT 160 Homework #5 Due Wednesday, November 9 th 9.2 (295) Relevant Cash Flows . Winnebagel Corp. currently sells 28,000 motor homes per year at $73,000 each and 7,000 luxury motor coaches per year at $115,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 23,000 of these campers per year at $19,000 each. An independent consultant has determined that if Winnebagel introduces the new campers, it should boost the sales of its existing motor homes by 2,600 units per year and reduce the sales of its motor coaches by 850 units per year. What is the amount to use as the annual sales figure when evaluating the project? Why? 9.6 (296) Calculating Salvage Value. Consider an asset that costs $780,000 and is depreciated straight- line to zero over its eight-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $135,000. If the relevant tax rate is 35 percent, what is the aftertax
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.
Ask a homework question - tutors are online