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A firm is considering installing a new machine estimated to deliver operating cash flows of $ 6 4 , 0 0 0 per year for
A firm is considering installing a new machine estimated to deliver operating cash flows of $ per year for years. However, at the beginning of the project inventory will decrease by $ AR will increase by $ and AP will increase by $ At the end of the project, NWC will return to its level before the project. The initial cost of the machine is $ The equipment will be depreciated straightline to a $ book value over the project's year life. The equipment will be salvaged at the end of the project creating an aftertax cash flow of $ a pts Construct a cash flow from assets schedule for this project. b pts What is the NPV of this project if the required rate of return is per year?
A firm is considering installing a new machine estimated to deliver operating cash flows of $ per year for years. However, at the beginning of the project inventory will decrease by $ AR will increase by $ and AP will increase by $ At the end of the project, NWC will return to its level before the project. The initial cost of the machine is $ The equipment will be depreciated straightline to a $ book value over the project's year life. The equipment will be salvaged at the end of the project creating an aftertax cash flow of $
a pts Construct a cash flow from assets schedule for this project.
b pts What is the NPV of this project if the required rate of return is per year?
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