Forecasted sales and costs for new GPSsystem

Assignment Help Financial Management

Reference no: EM131532492

Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 47,000 units at $16 a unit, production costs at 38% of sales price, annual fixed costs for production at $ 210,000. The company tax rate is 35%. 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 $1,410,000 for manufacturing equipment, which will be depreciated over six years (straight line) and will be sold at the end of six years for $ 380,000. The cost of capital is 12%. 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.)

Reference no: EM131532492

Questions Cloud

Describe the challenges that the disasters might present : Describe the challenges that these disasters might present to emergency managers in establishing intergovernmental relationships for response and recovery.

Statements is correct concerning the current value of asset : which one of the following statements is correct concerning the current value of the asset?

How fourteenth amendment should be approached in opinions : What are the differing doctrinal commitments as to how the Fourteenth Amendment (and the Ninth Amendment) should be approached in the opinions?

Dynamics of the team : How well our team operated, dynamics of the team? (basically you should write that we split the parts and than we check it together.

Forecasted sales and costs for new GPSsystem : Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system:

How have technological innovations affected the evolution : How have technological innovations affected the evolution of U.S. security policy since the end of World War II?

Complete the high capacity venue risks and threats outline : Complete the High Capacity Venue Risks and Threats Outline. Create a mind map, chart, or other approved deliverable displaying how technology can assist.

What is arithmetic average return over ten-year period : What is the arithmetic average return over the? 10-year period? What is the geometric average return over the? 10-year period?

Distinguishes between individual and group intelligence test : Distinguishes between individual and group intelligences tests, regarding the abilities assessed and the advantages and disadvantages of each type.

User Account

All Pages