Question
Stevens and Associates has been offered a 4-year contract to supply the IT requirements for a Payday Loan company. The following cash flow information is
Stevens and Associates has been offered a 4-year contract to supply the IT requirements for a Payday Loan company. The following cash flow information is provided:
Cost of computer equipment $250,000
Working capital required immediately 20,000
Upgrading of equipment in 2 years 90,000
Salvage value of equipment in 4 years 10,000
Annual net cash inflow 120,000 Other information:
The working capital would be released at the end of the contract
Stevens and Associates requires a 7% return
What is the Net Profit Value?
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Auditing Business Continuity Global Best Practices
Authors: Rolf Von Roessing
1st Edition
1931332150, 978-1931332156
