Question: CF - + Change in networking capital - upfront (-) S (sale of old asset if replacement) +T(S-B) Sale - book if old asset is

CF - + Change in networking capital - upfront (-) S (sale of old asset if replacement) +T(S-B) Sale - book if old asset is sold for a loss You get a credit 1 = new project cost + installation + shipping + putting it into service ABC Inc would like to purchase equipment for $57,000. Shipping and installation will be an additional $9,000. This equipment would be depreciated using straight-line over its 10 year economic life to a salvage value of zero. ABC will have to initially increase their networking capital by $4,000. Find the initial outlay and the depreciation. What is networking capital? Be specific. What is cost of capital? Be specific What is the decision making criteria for: NPV IRR PI

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