Income Statement for Rondo Company
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The fifth Rondo Case requires that you prepare an analysis of Rondo's new project. This opportunity is a five-year agreement with a long-time customer to have Rondo produce a new type of pipe. This project requires an investment assumed in your case. Your objective as CFO is to evaluate this project to determine if Rondo should accept this project. The rest of the project details are in Appendix B of the Rondo Case.
Requirement:
Prepare a pro forma PROJECT income statement for this project for years 1 to 5.
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Solution Summary
The solution explains how to prepare a pro-forma income statement for Rondo case.
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