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Please help with this question, its about NPV, and i provided the tables Apply the Concept Lawson Company is considering production of an electronic tablet
Please help with this question, its about NPV, and i provided the tables
Apply the Concept Lawson Company is considering production of an electronic tablet with the following associated data: Expected annual revenues, $1,468,000. A projected product life cycle of five years. Equipment, $1,590,000 with a salvage value of $205,000 after five years. Expected increase in working capital, $211,000 (recoverable at the end of five years). Annual cash operating expenses are estimated at $860,000. The required rate of return is 13 percent. (See Exhibit 19B-1 & Exhibit 19B-2) Estimate the annual cash flows for the tablet project by 1 completing the following table: . Cash outflows may be entered as negative numbers. Yea r 0 Item Equipment Cash Flow $ Working capital Total 1-4 Revenues $ $ Operating expenses Total 5 Revenues Operating expenses Salvage Recovery of working capital $ $ Total $ Using the estimated cash flows, calculate the NPV (round the 2 discount factor to three decimal places and the present values to . the nearest (dollar): NPV = $Step by Step Solution
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