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(Part 1) The Farmer Corporation is considering investing in a new manufocturing machine that has an estimated life of five years. The cost of the

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(Part 1) The Farmer Corporation is considering investing in a new manufocturing machine that has an estimated life of five years. The cost of the machine is $40,000 and the machine will be depreciated straight line over its five-yeat life to a residual value of $0. The manufacturing machine will result in sales of $50,000 in year 1 . Sales are estimated to grow by 6% each yeat it is estimated that the Farmer Corporation needs to hold 5% of its annual sales in cash, 10% of its annual sales in accounts receivable, 15% of its annual sales in inventory, and 20% of its annual sales in accounts payable. What is the requited net woiking capital in the first year for this project? Mutiple Cheses $5000 $1,500 510000 52,500 50. (Part if) The Farmer Cosporation is consideling investing in a new manufocturing machine that has an estimated ife of fve years. The cost of the machine is 540.000 and the machine will be depreciated straight line over its five-year life to a residual value of $0. The manufacturing machine will result in sales of $50,000 in year 1.50 ies are estimated to grow by 6% each year. it is estmated that the Farmer Corporation needs to hold 5% of its annual sales in cash, 10% of its annual sales in accounts recelvable, 15% of its annual sales in inventory. and 20% of its annual sales in accounts payable. What is the required net working capital investment (changes in NWC) in the 2nd year for this project? Musiple Cnake 5+50 $300. $2500 35,000 15,300

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