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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!
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
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