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find the inital outlay and the depreciation CF = -1 + Change in networking capital - upfront (-) S (sale of old asset if replacement)
find the inital outlay and the depreciation
CF = -1 + Change in networking capital - upfront (-) S (sale of old asset if replacement) + T (S-B) Sale - book if old asset is sold for a loss You get a credit 1 = new project cost + installation + shipping + putting it into service ABC Inc would like to purchase equipment for $57,000. Shipping and installation will be an additional $9,000. This equipment would be depreciated using straight-line over its 10 year economic life to a salvage value of zero. ABC will have to initially increase their networking capital by $4,000. Find the initial outlay and the depreciation Step by Step Solution
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