Question
The ABC Company is considering an expansion of its production facilities which will permit the firm to build and sell a new line of smart
The ABC Company is considering an expansion of its production facilities which will permit the firm to build and sell a new line of smart phones. The project requires a $44,435,385 capital investment (think new machine) and is expected to have a three-year economic life. The asset will be depreciated to zero using straight line depreciation method over the life of the project.
Other related information:
At the end of the project, the equipment can be sold for $2,953,816.
Incremental sales are projected to be $30,525,157 per year
Annual costs (excluding depreciation) are estimated to be $4,600,950.
The project requires a $8,965,057 initial investment in net working capital.
The expected tax rate is 27%.
The project's CASH FLOW on date 0 is $______.
(Do NOT include the $ sign or any other text. Indicate negative value with a minus sign. Enter your answer rounded to nearest integer, e.g. 10002)
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