Chan Manufactures and Sells 10 Million Bags to Its International

question 93

Essay

Chan 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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Definitions:

Emotional

Relating to a person's feelings, moods, and affective states.

Intellectual

Relating to the ability to think and understand ideas and information at a high level.

Communication Competency

The ability to effectively transmit, receive, and interpret ideas, information, and feelings through verbal and non-verbal means.

Incivility

Rude or unsociable speech or behavior that violates workplace norms for mutual respect.