Question: - A Moving to another question will save this response uestion 10 6 points Save Answer Gulp Corp. produces flavored tonic syrup used in micers
- A Moving to another question will save this response uestion 10 6 points Save Answer Gulp Corp. produces flavored tonic syrup used in micers for specialty drinks. The companies latest recipe is for an espresso tonic which mixes tonic water and coffee for what they hope will be the new popular drink of the summer, if they are going to pursue this new tonic syrup line, they will need to buy a commercial grade espresso machine, and are trying to determined is worth spending the $350.000 on the machine. The company estimates that operating cash flows from the new tonic syrup line would be $100.000 a year for four year. To start production, the company would need to spend 530.000 in working capital. At the end of four years, the company could sell the espresso machine for 5125.000. The company requires a 17 return on all new investiments What is the NPV of this investment Round your answer to two decimo ploees. your answer is positive, do not include the *** sign. If your answer is negative, include the sign, For your online control
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
