Question

Melrose Motorworks Corp. currently sells 23,000 compact cars per year at $14,690 each, and 38,600 luxury sedans at $43,700 each. The company wants to introduce a new mid-sized sedan to fill out its product line; it hopes to sell 28,500 of the cars per year at $33,600 each. An independent consultant has determined that if Melrose introduces the new cars, it should boost the sales of its existing compacts by 12,500 units per year while reducing the unit sales of its luxury sedans by 8,200 units per year. What is the annual cash flow amount to use as the sales figure when evaluating this project? (Enter the answer in dollars. Omit $ sign in your response.)

The annual cash flow amount          

Answer 1

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