Question: Project Expand will require $350,000 to replace some existing machinery, capitalized expenditures total $40,000. The after-tax salvage value of the old machinery will provide $90,000
Project Expand will require $350,000 to replace some existing machinery, capitalized expenditures total $40,000. The after-tax salvage value of the old machinery will provide $90,000 to the firm. The new machine will require that the firm purchase some additional inventory which will result in an increase in net working capital of $50,000. What is the initial cash outflow? A) $350,000 B $270000 $300,000 D None of the above are correct Question 12 1 Point Hi Lighter company is considering a project with an initial investment of $25,000 that generates cash-inflows of $10,000 per year for 8 years starting today. What is the net present value of this project if the firm requires a 15% rate of return on this project? I $19,873 3 B $1,152 C) $22,854 D $55000
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