After spending a year and ​$49,000​,you finally have the design of your new product ready. In order to start​ production, you will need ​$31,000 in raw materials and you will also need to use some existing equipment that​ you've fully​ depreciated, but which has a market value of ​$103,000. Your colleague notes that the new product could represent 10​% of the​ company's overall sales and that 10​% of overhead is ​$60,000. Your tax rate is 25​%. As you start your analysis of the​ product, what should be your initial incremental free cash​ flow? The initial incremental free cash flow is ​$________.​(Round to the nearest dollar. Be sure to use a negative sign if the answer is​ negative.)

Q25

QUESTION 7 You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 330 hours per month and charge your customers $18 per hour. Your anticipated costs include: Advertising Gas $33.00 per month $1.20 per hour Depreciation $25.00 per month Assistant's Wages $7.00 per hour Miscellaneous Expenses $950.00 per month Calculate your budgeted contribution margin per hour on the contribution margin income statement.

19 A company wants to add a manufacturing machine to an existing factory to accommodate rising demand for their product. The factory is close to its effective capacity now, so the new machine will support sales which are expected to grow linearly during the next four years, topping out at $2,000,000 for years 4 and 5. Sales for each year are forecasted to be: Year 1: $1,000,000 ⚫Year 2: $1,500,000 Year 3: $2,000,000 Year 4: $2,000,000 Year 5: $2,000,000 ⚫ Cash operating costs will be 65% of revenue for each year. The machine has an installed cost of $2,000,000, and will be depreciated straightline over 5 years assuming a 10% salvage value. The salvage amount will also be included as part of the terminal value, representing the amount recaptured at the end of year 5. There will be no tax effect in the salvage value because the book value is expected to be 10% of the historical cost at the end of year 5. There will be no need for additional net working capital in the initial investment,…