CumChan Manufactures and Sells 10 Million Bags to Its International

question 108

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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Definitions:

Utilities

Services provided to the public, including water, electricity, natural gas, and sewage treatment.

Notorious Manner

This refers to actions or behavior that is widely known and recognized, often for negative reasons, due to the public nature of the activity.

Title

The legal right to own, use, or sell property or assets.

Deed

A document by which title to real property is passed.