Question: With the following capital budgeting elements identify the cash outflows

With the following capital budgeting elements, identify the cash outflows and cash inflows that you would use to judge the attractiveness of a project by using the time-value-of-money yardsticks: capital assets ($1.5 million), working capital in year 1 ($500,000) and year 2 ($200,000), salaries ($140,000), working capital loan ($190,000), residual value at the end of the 11th year ($1 million), profit for the years 1 to 10 ($300,000), mortgage ($1.1 million), non-cash expense ($50,000), revenue ($300,000), and sunk costs ($100,000). The project’s lifespan is 10 years and the cost of capital is 8%.



$1.99
Sales0
Views50
Comments
  • CreatedDecember 03, 2014
  • Files Included
Post your question
5000