× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
g
3
3
2
J
2
p
2
m
2
h
2
s
2
r
2
d
2
l
2
a
2
Home Q & A Board Other Fields Homework Help Business Management
New Topic  
kinglazy kinglazy
wrote...
Go to Answer
Posts: 694
Rep: 0 0
6 years ago
Innovative Inc is experiencing a boom for the products it has introduced recently. The estimated annual sales projected for the next five years are given in the following table. The current capacity is equivalent to only 100 million sales.
 
  The company is considering the alternative of expanding capacity to an equivalent of 250 million sales. Assume a 25 percent pretax profit margin. What is the increase in total pretax cash flow (summed over all years) that would be enjoyed because of the expansion?
 
  Year Annual Sales
  (in  million)
  1 100
  2 140
  3 170
  4 200
  5 250
 
  A) less than or equal to 40 million
  B) more than 40 million but less than or equal to 70 million
  C) more than 70 million but less than or equal to 100 million
  D) more than 100 million
Read 30 times
1 Reply
Replies
Answer verified by a subject expert
PinkFlowerPinkFlower
wrote...
#1
Top Poster
Posts: 899
Rep: 5 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
1

Related Topics

kinglazy Author
wrote...

6 years ago
Thanks for your help!!
jakechambo3
wrote...

Yesterday
Smart ... Thanks!
Ctownsend
wrote...

2 hours ago
You make an excellent tutor!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1107 People Browsing
 117 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 245
  
 63
  
 282
Your Opinion
What's your favorite coffee beverage?
Votes: 274
Previous poll results: How often do you eat-out per week?