Essay
CumChan manufactures and sells 10 million bags to its international market at a cost of $20.00 each.It is about to introduce a new line of bags due to past success and forecast sales to be 12 million bags at a new price of $25 each.Sales on the old bags are anticipated to fall to 3 million.The old bags cost $6 each to manufacture,and the new ones will cost $8 each.What will be the cash flow used to evaluate the present value of the introduction of the new bag?
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Gross revenues from new bag = 12 million...View Answer
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Correct Answer:
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