Question
fred f stone wants to increase the production rate i the pebble tech manufacturing plant by adding a new machine calculate npv for the following
fred f stone wants to increase the production rate i the pebble tech manufacturing plant by adding a new machine calculate npv for the following capital budgeting proposal $200,000 initial cost to be dpreciated straight line over five years to an expected salvage value of $10,000 resale value of the machine ex expected to be $11,000 it has a 35% tax rate $85,000 additional annual expense and $10,000 additional investment in working capital
what would be projected cash flow for year 0
-243,000
-200,000
-220,000
-210,000
what would be projected cash flow for year 5
57,100
67,100
67,750
77,750
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