What is the amount to use as the annual sales figure when evaluating this project? 1 answer below »

Relevant Cash Flows. Whangaroa Campers currently sells 19 000 caravans per year at $65 000 each, and 6000 luxury caravans per year at $105 000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 19 000 of these campers per year at $21 000 each. An independent consultant has determined that if Whangaroa introduces the new campers, it should boost the sales of its existing caravans by 2500 units per year, and reduce the sales of its luxury caravans by 900 units per year. What is the amount to use as the annual sales figure when evaluating this project? Why?

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