Question: Please also explain how the inventory decrease and AP increase is figured . Are they an outflow or inflow? Does the rate of return mean

Please also explain how the inventory decrease and AP increase is figured . Are they an outflow or inflow? Does the rate of return mean anything? Thank you!!

69. Given the following information, what is the required cash outflow associated with the acquisition of a new machine; that is, in a project analysis, what is the initial investment outlay at t=0? Purchase price of new machine $8,000 Installation charge 2,000 Market value of old machine 2,000 Book value of old machine 1,000 Inventory decrease if new machine is installed 1,000 Accounts payable increase if new machine is installed 500 Tax rate 34% Required rate of return 15%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Below is the assignment, attached in the excel file is actually all the answers, I need these transferred into my own excel file, answering all the questions below. Integrated mini-case: ?Working...

1) A project has a net present value of zero. Given this information: A) the project has a zero percent rate of return. B) the project requires no initial cash investment. C) the project has no cash...

Please process at your earliest convenience. I have enclosed the attached document and other required documents. Thank you for your help! Consider how Kyler Valley Spring Park Lodge could use capital...

PLEASE COMPLETE NO LATER THAN 11/04 @8am Each question(1,2,& 3) must be a minimum of 200 words. Please EXPLAIN answers in FULL detail and make answers knowledgeable based off the attached reading,...

I've attached the attachment as a word file, thanks! JWCL165_c13_612-673.qxd 8/13/09 11:15 AM Page 612 13 Statement of Cash Flows Chapter STUDY OBJECTIVES After studying this chapter, you should be...

I need help with the Final Project presentation. (The last part) I attached my previous presentations to it as well Milestones 1, 2, 3 and the interview research. Please help, and please cite all...

Week 7 question have two parts hon I will give enough time and more cash... Please complete on another Excel Document Question 1 Questions 2 Part 1: Daughtry Cosmetic's Single Step Income Statement...

Hello. Can you help with this four question problem? Case PRIVATE EQUITY CASE: MERGER CONSOLIDATION The questions below COMBINE the Ohio & Maryland PT acquisitions as if they are a single c Learning...

Read the case "Boeing's High-Flying Approach to HR Planning & Recruitment" and answer the following questions: 1. To meet labor shortages within the company, Boeing starts with promotions and...

Suppose MPC equals 0.9, government taxes 30% of all incomes, and the marginal propensity to import equals 0.07. The economy's real GDP is currently $5,454 billion while its potential real GDP is...

In C + + Given two functions: int extractInt ( const char src [ ] , int& index,int& depth ) , which extracts the first few digits from array src [ ] until ecountering a " { " , and converting into...

9. (15 points) A company is considering a new project that requires an investment of \$5 million. The project is expected to generate cash flows of $2 million in year 1,$3 million in year 2, and $4...

2 How might Sus doctor be able to improve his competence in these health interviews?

What constraints would you advocate for young players? (very specific)

How did you feel about taking piano lessons as a child? (general)