Solution-Net cash flow every year starting today

Net cash flow every year starting today

Reference no: EM131402429

Louis is the manager of the McGill campus bookstore. There's a new textbook that will be mandatory next year and will be sold at a price of 150$ each. Louis decides to preorder 10,000 copies today at a price of $110 each, and estimates that 2,500 copies will be sold next year and 3,500 the year after at 150$. Also, since a new edition of the textbook is released every three years, he intends to give a discount of 25 % the third year to liquidate the entire inventory. Assuming a corporate tax of 40% and no other expenses, what is the net cash flow every year starting today?

Reference no: EM131402429

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Net cash flow every year starting today

Reference no: EM131402429

Reference no: EM131402429

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