Perma-Filter Co. is a manufacturer of high performance automotive oil filters. The firm is considering replacing an old assembly machine with a new one. The new machine will last for ten years

If the replacement is made, an additional investment of $40,000 in inventories will be required due to the new manufacturing technology. The purchase of this inventory will create accounts payable of $25,000. The additional investment in net working capital will be recovered at the end of ten years. Compute the project’s cashflows related to Net working capital.

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Initial Investment 40 000 Account s ... View the full answer