Moscow Moldings is considering installing a new molding machine which is expected to produce operating cash flows
Question:
Moscow Moldings is considering installing a new molding machine which is expected to produce operating cash flows of $75,000 a year for 7 years. At the beginning of the project, inventory will decrease by $15,000, accounts receivable will increase by S35.000, and accotmts payable will increase by $15,000. All net working capital will be recovered at the end of the project. The initial cost of the molding machine is $280,000. The equipment will be depreciated straight-line to a sew book value over the life of the project. The equipment will be salvaged at the end of the project creating a S54,000 after-. cash flow. What is the net present value of this project given a required return of 20 percent?
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam