A manufacturing company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct costs including labor and materials will be 45% of sales. Indirect incremental costs are estimated at $95,000 a year. The project requires a new plant that will cost a total of $1,500,000, which will be a depreciated straight line over the next 5 years. The new line will also require an additional net investment in inventory and receivables in the amount of $200,000. Assume there is no need for additional investment in building the land for the project. The firm’s marginal tax rate is 35%, and its cost of capital is 10%. To receive full credit on this assignment, show all work, including formulae and calculations used to arrive at financial values. Your submitted assignment (130 points) must include the following: A double-spaced Word document of 2–3 pages that contains your calculation values, your complete calculations, any formulae that you used, and your answers to the two questions listed in the assignment guidelines.
https://cheapessay.us/wp-content/uploads/2021/08/whatsapp-logo-300x115.jpeg 0 0 Cheap essay https://cheapessay.us/wp-content/uploads/2021/08/whatsapp-logo-300x115.jpeg Cheap essay2019-03-28 04:24:302019-03-28 04:24:30A manufacturing company is thinking of launching a new product. The company expects to sell $950,000 of the new product in the first year and $1,500,000 each year thereafter. Direct