A proposed project has the following data: Three years ago an initial fixed investment equals $200,000...

 

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A proposed project has the following data: Three years ago an initial fixed investment equals $200,000 and the working capital investment equals $80,000 are required to start up the project. • $200,000 was invested for research and development two year ago. • $100,000 was invested for research and development one year ago. The research is now completed, as a result of this research, annual savings will result in the coming years as shown in the following table 2 to 4 Year Cash Flow 5 to 8 | 80,000 70,000 60,000 40,000 30,000 1. 9 to 13 13 to n n+1 020222 Final salvage value of $20,000 Determine the values of "n" that make the project accepted, knowing that DCFRR equals 15% A proposed project has the following data: Three years ago an initial fixed investment equals $200,000 and the working capital investment equals $80,000 are required to start up the project. • $200,000 was invested for research and development two year ago. • $100,000 was invested for research and development one year ago. The research is now completed, as a result of this research, annual savings will result in the coming years as shown in the following table 2 to 4 Year Cash Flow 5 to 8 | 80,000 70,000 60,000 40,000 30,000 1. 9 to 13 13 to n n+1 020222 Final salvage value of $20,000 Determine the values of "n" that make the project accepted, knowing that DCFRR equals 15%

Answer rating: 100% (QA)

New Project Cashflow Year Cash Inflow Cash outflow Net Cashflow PVF 15 Discounted Value a b c dbc e ... View the full answer