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My side that i did this wrong Exam type question % Required Rate of Return Face Shield Project at 8 % POTD# 3 Bridgette and
My side that i did this wrong
Exam type question Required Rate of Return Face Shield Project at POTD#
Bridgette and Lisa just completed the development of a better face shield for health workers. The new product is expected to produce annual revenues of $ Bridgette and Lisa require an investment in an advanced D Printer costing $ The project has an expected life of years based upon the development and dissemination of a vaccine for coronavirus. The D printer will have $ salvage value as the market for D printers will be flooded as demand plummets for face shields. In order to produce the face shields Bridgette and Lisa must maintain a large inventory of plastic pellets. Therefore, working capital is expected to increase by $ However, Bridgette and Lisa will not recover any of working capital at the end of the products life cycle. Annual operating expenses are estimated at $ The required rate of return is
Calculate the Net Present Value
Prepare a schedule of projected annual cash flows
CASHFLOW WORKSHEET
Year Zero Add Two Cash Outflows
Buy Equipment
Increase Working Capital Investment buy inventory
Year One RevenueExpense
Year Two RevenueExpense
Year Three RevenueExpense
Year Four RevenueExpense
table
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