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Can you please help me create the cash flow? The PPE is $22,193,667. Please include an equations/functions used. | Cash Flows 4 0 1 3
Can you please help me create the cash flow?
The PPE is $22,193,667.
Please include an equations/functions used.
| Cash Flows 4 0 1 3 5 100 7 8 9l 10 11 2= Cash Flows Investment: Based on a report completed by an independent engineering firm at a cost of $250,000, it has been determined that Dow can utilize equipment from another chemical processing plant to equip the new factory. However, to safely move the preexisting equipment, the 547 union workers who are currently operating the equipment will have to be furloughed at full pay for one month. You may assume each worker's normal salary is $1,000.00 per week. The loss of revenue from the furloughed employees not working will be 0.25% of the average sales of the company of the past three fiscal years (i.e. 2020, 2019, and 2018). Construction of the factory will require an initial investment equal to 5.00% of the company's average net property, plant, and equipment (PPE) over the past three fiscal years and is expected to have a useful life of 10 years. Construction of the factory will take one year. The project will then require an additional investment equal to 7.00% of initial cost in the first year, a 3.00% increase in the second year, and a 1.00% increase for each remaining year in the projects useful life. Information on PPE can be found on Yahoo Finance (www.finance.yahoo.com). | Cash Flows 4 0 1 3 5 100 7 8 9l 10 11 2= Cash Flows Investment: Based on a report completed by an independent engineering firm at a cost of $250,000, it has been determined that Dow can utilize equipment from another chemical processing plant to equip the new factory. However, to safely move the preexisting equipment, the 547 union workers who are currently operating the equipment will have to be furloughed at full pay for one month. You may assume each worker's normal salary is $1,000.00 per week. The loss of revenue from the furloughed employees not working will be 0.25% of the average sales of the company of the past three fiscal years (i.e. 2020, 2019, and 2018). Construction of the factory will require an initial investment equal to 5.00% of the company's average net property, plant, and equipment (PPE) over the past three fiscal years and is expected to have a useful life of 10 years. Construction of the factory will take one year. The project will then require an additional investment equal to 7.00% of initial cost in the first year, a 3.00% increase in the second year, and a 1.00% increase for each remaining year in the projects useful life. Information on PPE can be found on Yahoo Finance (www.finance.yahoo.com)Step by Step Solution
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