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Genetics engineering is considering the purchase of some new equipment that will cost 300,000 installed the equipment will produce a product that must be FDA
Genetics engineering is considering the purchase of some new equipment that will cost 300,000 installed the equipment will produce a product that must be FDA approved and this will require at least two years year one and year to the company will have net cash outflow of 110,000 and 50,000 year 3 to 5 the company will generate net cash inflow of 200,000 , $240,000 , $330,000. at the end of year five the equipment and the product will be absolute if the firms cost of capital is 14% should they invest in the new equipment
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