Question
Meltek corporation is involved in the business of furniture manufacturing. The current capacity utilization of Meltek machines is already 100 percent and its the peak
Meltek corporation is involved in the business of furniture manufacturing. The current capacity utilization of Meltek machines is already 100 percent and its the peak season for the customers demand for furniture in Meltek. Due to this, the company is not able to meet the timely production of goods and require more machinery and place for manufacturing the pending orders. Now, considering the proposal from the project manager, following information is available for evaluating a new project investment. The expected cash flows from the investment would result as follows:
| Year | Cash Flow |
| 0 | -10,00,000 |
| 1 | 3,00,000 |
| 2 | 3,50,000 |
| 3 | 4,00,000 |
| 4 | 3,50,000 |
The cost of capital for Meltek Industries is 15 percent. Calculate the Net Present Value of this project?
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Global Finance
Authors: Robert Holton
1st Edition
0415619165, 978-0415619165
