Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Grady Precision Measurement Tools has forecasted the following sales and costs for a new G...

Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system annual sales of 44000 units at $16 a unit production costs

Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS? system: annual sales of 44,000 units at ?$16 a? unit, production costs at 37?% of sales? price, annual fixed costs for production at $ 190,000. The company tax rate is 30%. What is the annual operating cash flow of the new GPS? system? Should Grady Precision Measurement Tools add the GPS system to its set of? products? The initial investment is ?$1,340,000 for manufacturing? equipment, which will be depreciated over six years? (straight line) and will be sold at the end of five years for $ 380,000. The cost of capital is 11?%.

What is the annual operating cash flow of the new GPS system?
What is the after-tax cash flow of the GPS system at disposal?

What is the NPV of the new GPS syatem?
Should Grady Precision Measurement Tools add the GPS system to its set of products? (Select the best response.)

 

Apr 04 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions