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Calculate Cash Flows Determine the net cash flows for the first year of the proj

ID: 2489540 • Letter: C

Question

Calculate Cash Flows

Determine the net cash flows for the first year of the project, Years 2–9, and for the last year of the project. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar.

Cornucopia Inc.

Net Cash Flows

Year 1

Years 2-9

Last Year

Initial investment

Correct 8

Operating cash flows:

Annual revenues

Correct 11

Correct 12

Correct 13

Selling expenses

Correct 15

Correct 16

Correct 17

Cost to manufacture

Correct 19

Correct 20

Correct 21

Net operating cash flows

Correct 23

Correct 24

Correct 25

Total for Year 1

Correct 27

Total for Years 2-9

Correct 29

Residual value

Correct 31

Total for last year

Correct 33

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Hint(s)

Determine the net cash flows for the first year of the project, Years 2–9, and for the last year of the project. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar.

Cornucopia Inc.

Net Cash Flows

Year 1

Years 2-9

Last Year

Initial investment

$

Correct 8

Operating cash flows:

Annual revenues

$

Correct 11

$

Correct 12

$

Correct 13

Selling expenses

Correct 15

Correct 16

Correct 17

Cost to manufacture

Correct 19

Correct 20

Correct 21

Net operating cash flows

$

Correct 23

$

Correct 24

$

Correct 25

Total for Year 1

$

Correct 27

Total for Years 2-9

$

Correct 29

Residual value

Correct 31

Total for last year

$

Correct 33

Explanation / Answer

CALCULATIO OF NET CASH FLOWS:

____________________________________________________________________________________________

                                                                 YEAR 0                   YEAR 1              YEARS 2 - 9           LAST YEAR          

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