Use the Information for the Question(s)below

question 43

Essay

Use the information for the question(s)below.
The Sisyphean Corporation is considering investing in a new cane manufacturing machine that has an estimated life of three years.The cost of the machine is $30,000 and the machine will be depreciated straight line over its three-year life to a residual value of $0.
The cane manufacturing machine will result in sales of 2000 canes in year 1.Sales are estimated to grow by 10% per year each year through year three.The price per cane that Sisyphean will charge its customers is $18 each and is to remain constant.The canes have a manufacturing cost of $9 each.
Installation of the machine and the resulting increase in manufacturing capacity will require an increase in various net working capital accounts.It is estimated that the Sisyphean Corporation needs to hold 2% of its annual sales in cash,4% of its annual sales in accounts receivable,9% of its annual sales in inventory,and 6% of its annual sales in accounts payable.The firm is in the 21% tax bracket,and has a cost of capital of 10%.
-Calculate the total Free Cash Flows for each of the three years for the Sisyphean Corporation's new project.

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Definitions:

Transformational Leadership

A leadership strategy that initiates transformation within people and societal systems with the goal of nurturing followers to become leaders.

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A style of leadership that focuses on supervision, organization, and performance; leadership is based on a system of rewards and punishments.

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Individuals who inspire and motivate followers through their personal charm, persuasive, and visionary qualities.

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Having belief in one's own abilities and qualities, enabling a person to face challenges with assurance.