Because they did not have a high population of fish at that time
Answer:
The company's free cash flows in the first year will be of $10.756 million
Explanation:
In order to calculate how will the purchase of this item change the company's free cash flows in the first year we would have to calculate the following:
free cash flows = inventory reducing - aftertax annual cost + depreciation tax shield
inventory reducing = $10.7 million
aftertax annual cost = 0.12*(1-40%) = $0.072
depreciation tax shield = 1.6/5*40% = $0.128
Therefore, free cash flows =$10.7 - $0.072 + $0.128 = 10.756
free cash flows =$10.756 million
The company's free cash flows in the first year will be of $10.756 million
The swap that should be the cheapest swap for Henry should be to Replace Duque de Caxias with Fortaleza.
- The answer to this question is option B.
<h3>Why Henry has to make this swap.</h3>
The reason why this swap is the best is because visiting Fortaleza is more within the budget that he has.
If he sticks to the original plan, he would be needing more funds for the trip that he intends to make.
Read more on Henry's trip here:
brainly.com/question/3804099?referrer=searchResults