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All three final answers should be rounded to 2 decimal places. Just type in the number, ignoring the $ sign Deodernot Corp's is considering a
All three final answers should be rounded to 2 decimal places. Just type in the number, ignoring the $ sign Deodernot Corp's is considering a new project of building a shoe factory. The initial investment is $20,000. The project will last for 4 years and is depreciated straight-line to a book value of zero. The salvage value of the project will be $1,000 at t=4. Inventories and accounts payable will rise immediately by $1,500 and $1,000, respectively. Accounts receivable will rise at the end of the first year by $2,000. All working capital components return to original values at the end of the project's life. If the company's' corporate tax rate=34%, answer the following: 24.1 (2 points) What is the after-tax salvage value (year 4) of the factory ? 24.2 (2 points) What is the value of depreciation in each of years 1 through 4 ? 24.3 (1 point) What is the net change in working capital in year 0 ? Put a negative sign in front if the change is negative (decrease in NWC) 24.4 (1 point) What is the net change in working capital in year 1 ? Put a negative sign in front if the change is negative (decrease in NWC) 24.5 (1 point) What is the net change in working capital in year 4? Put a negative sign in front if the change is negative (decrease in NWC)
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