4041 Question 40 ICLO-77 A company is to start in 2021 gaining a gross revenue from selling mechanical products with a m

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4041 Question 40 Iclo 77 A Company Is To Start In 2021 Gaining A Gross Revenue From Selling Mechanical Products With A M 1 (72.12 KiB) Viewed 48 times

4041 Question 40 ICLO-77 A company is to start in 2021 gaining a gross revenue from selling mechanical products with a market size oquals to $500 million. Other Tinancial Information are as follows: • The selling Price = $100/unit, compnay states that number of production demand - 500,000 units/ year. 10 points The material cost is 20% from selling price. • The manufacturing overhead per unit is 75% of the material cost • The labor cost per unit is equal to = "%" from the selling price. This "%" is equal in value to % of market sharo . In 2021, the total operating expenses including the equiprt depreciation value $ 14.6 million To manufacture these products the company would like to purchase an equipment at the beginning of 2021, which can be used for 10 years with book value = $1.5 million at end of the sixth year and salvage value=S0.5 million at the end of year 10 • The assets of this company at the beginning of 2021 are equal to $140 million while the total equities + liabilities equal to $80 million. To balance the difference between the assets and liabilities, the company decided to take a loan from the bank with interest of 5% per year. • The company must pay a tax of 5% from the net income before taxes. What is the cash flow value at the end of 2021 in million of $ "example if you get 50 million just write 50 or if you get -50 million just write -50"?