Question
A food processor who has a cash flow as shown in Table 1, plans to buy an equipment worth 60,000 RM. If you were chosen
A food processor who has a cash flow as shown in Table 1, plans to buy an equipment worth 60,000 RM. If you were chosen as his consultant, analyze his cash flow and advice him on the appropriate time to purchase this equipment.
Table 1. Annul cash flow (RM) for an investment project @8%
| Year | Cash revenue | Cash expenses | Salvage value | taxes | Net cash flow |
| 1 | 40032 | 20301 | - | 5014 | ? |
| 2 | 43360 | 20910 | - | 3777 | ? |
| 3 | 42122 | 21041 | - | 4139 | ? |
| 4 | 40887 | 21483 | - | 4413 | ? |
| 5 | 41886 | 21621 | - | 4119 | ? |
| 6 | 41654 | 21931 | 30000 | 16741 | ? |
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Financial Accounting A Focus On Interpretation And Analysis
Authors: Richard F Kochanek, A Douglas Hillman
7th Edition
1111061750, 9781111061753
