Calculate Cash Flows Determine the net cash flows for the first year of the proj
ID: 2491818 • 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
HideHint(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
Answer Cornucopia Inc. Net Cash Flow Year 1 Year 2-9 Last Year Initial Investment 107000 Opertaing Cash Flow Annual Revenue 272000 272000 272000 Selling Expenses 13600 13600 13600 Cost to manufacture 198600 198600 198600 Net Operating Cash Flow 59800 59800 59800 Total for Year 1 (47,200) Total for Year 2-9 478400 Residule value 13000 Total for Last year 72800 Working Notes Manufacturing Cost Direct labor 9.00 Direct Material 36.00 Variable factory overhead 4.65 Total cash cost 49.65 Annual cash cost 4000*49.65 198600
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