Question: Answer questions 7 , 8 , and 9 using the following problem Johnson, Inc. is considering a new project. The project will require $ 3
Answer questions and using the following problem
Johnson, Inc. is considering a new project. The project will require $ for new fixed assets, $ for delivery and installation and $ for additional inventory. The project has a year life. The fixed assets will be depreciated straightline
to a zerobook value over the life of the project. At the end of the project, the fixed assets can be sold for $ The net working capital returns to its original level at the end of the project. The project is expected to generate annual sales of $ and costs of $ The tax rate is percent and the required rate of return is percent.
What is the project's cash flow at time zero Initial Investment
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