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Borodin Glassworks is considering adding a new product line of glass Christmas ornaments. In order...

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Borodin Glassworks is considering adding a new product line of glass Christmas ornaments. In order to add the product line, the following investment would be required. S 300,000 Production equipment Sales displays 100,000 S Total 400,000 The production equipment and sales displays would have an expected life of ten years. All equipment and displays would be depreciatedover a ten year life using straight line depreciation with no salvage value. Attheend often years, it is expected that all equipment could be sold for$10,000. Following are the expected operating cash receipts and cash expenses by year for the proposed product line BORODIN GLASS WORKS CAPITAL BUDGETING DATA FOR INVESTMENT PROJECT Cash Expenses Year Cash Revenues 1 S 40,000 IS 50,000 2 90,000 50,000 110,000 55,000 4 120,000 65,000 150,000 70,000 75,000 6-10 (each year) 170,000

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