Question: a new machine will cost $2m and will last for 4 years. at the end of 4 years the machine can be sold for 400k.
a new machine will cost $2m and will last for 4 years. at the end of 4 years the machine can be sold for 400k. executivrs believe sales will be $1.8m each year for the next 4 years(no growth), with cost of goods sold 0.6M(33.333% of sales). fixed costs for production are 300k/yr. net working capital required for each line are $100k 120k 150k and 90k respectively. prefect strangers inc uses straight line depreciation and has a tax rate of 40%. complete capital budget for this project
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