You are a manager at Peroolated Fiber, which is considering expanding its operations in synthetic ber manufacturing. Your boss comes into your ofce,...
I need help calculating the
- Attachment 1
- Attachment 2
- Attachment 3
You are a manager at Peroolated Fiber, which is considering expanding its operations in synthetic fiber manufacturing. Your boss comes into your office, drops a consultant's report on your desk, and complains, "Weowe these consultants $1.2 million for this report, and I am not sure their analysis makes sense. Before we spend the $24 million on new equipment needed for this project, look it over and give me your opinion." Youopen the report and find the following estimates (in millions of dollars): (Click on the Icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) Project Year E1Earnings Forecast (3 million) 1 2 . . . 9 10Sales revenue 28.000 28.000 28.000 28.000- Cost of goods sold 16.800 16.800 16.800 16.800= Gross profit 11.200 11.200 11.200 11.200- Selling, general, and administrative expenses 1.920 1.920 1.920 1.920— Depreciation 2.400 2.400 2.400 2.400 = Net operating income 6.880 6.880 6.880 6.880
Show more