Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i always thumbs up! Year 1 Year 2 Year 3 Year 4 Year 5 Year 0 -$80,000.00 Full price of machine Increase in net working

i always thumbs up!
image text in transcribed
Year 1 Year 2 Year 3 Year 4 Year 5 Year 0 -$80,000.00 Full price of machine Increase in net working capita -$2,000.00 Incremental revenue - costs Depreciation Operating profit before taxes Taxes Operating profit after taxes Add back depreciation Operating cash flow $31,000.00 $31,000.00 $31,000.00 $31,000.00 $31,000.00 $26,400.00 $36,000.00 $12,000.00 $5,600.00 $0.00 $4,600.00 -$5,000.00 $19,000.00 $25,400.00 $31,000.00 $1,840.00 -$2,000.00 $7,600.00 $10,160.00 $12.400.00 $2,760.00 -$3,000.00 $11,400.00 $15,240.00 $18.600.00 $26,400.00 $36,000.00 $12,000.00 $5,600.00 $0.00 S29,160.00 $33,000.00 $20,840.00 $18.600.00 Sale of machine Taxes Net salvage $10,000.00 $4,000.00 $6,000.00 Return of net working capital $2,000.00 Total cash flow S29,160.00 $33,000.00 $20,840.00 NPV $20,113.09 What is the total cash flow in Year O? O $26,600 -$82,000 $23,400

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Finance

Authors: Ronald R. Pitfield

1st Edition

0852581513, 978-0852581513

More Books

Students also viewed these Finance questions

Question

2. What is Web mining? How does it differ from regular data mining?

Answered: 1 week ago