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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The Answer of 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?

Chan Manufactures and Sells 10 Million Bags to Its International