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question 6

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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 using the straight-line method over its three-year life to a residual value of $0.
The cane manufacturing machine will result in sales of 2 000 canes in year 1. Sales are estimated to grow by 10% per year for each of the three years. The price per cane that Sisyphean will charge its customers is $18 each and is to remain constant. The canes have a cost per unit to manufacture 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 5% of its annual sales in accounts payable. The firm is in the 30% tax bracket and has a cost of capital of 10%.
-Bubba Ho-Tep Ltd reported net income of $360 million for the most recent fiscal year. The firm had depreciation expenses of $150 million and capital expenditures of $180 million. Although it had no interest expense, the firm did have an increase in net working capital of $24 million. What is Bubba Ho-Tep's free cash flow?

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Cohen And Benjamin

Cohen and Benjamin are likely references to individuals in a specific context; without additional information, it is not clear who they are or what their significance is. Likely not a standalone key term unless tied to a specific field or theory.

Moral Character

The composition of qualities, virtues, and ethical principles that define an individual's behavior and decisions as morally good or bad.

Transplant Organ

An organ removed from one person's body for the purpose of being placed (transplanted) into another person’s body to replace a damaged or missing organ.

Personal Wealth

The total value of all financial and non-financial assets owned by an individual minus any liabilities.