Question

Admiralty Corporation is analyzing a proposal to switch its factory over to a lights-out operation. To do so, it must acquire a fully automated machine. The machine will be able to produce an entire product line in a single operation. Projected annual net cash inflows from the machine are $180,000, and projected net income is $120,000. Why is the projected net income lower than the projected net cash inflows? Identify possible causes for the $60,000 difference.



$1.99
Sales0
Views239
Comments0
  • CreatedMarch 26, 2014
  • Files Included
Post your question
5000