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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 $44356182 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 $2626556. Incremental sales are projected to be $34245071 per year Annual costs (excluding depreciation) are estimated to be $4480281. The project requires a $9109455 initial investment in net working capital. The expected tax rate is 28%. The project's CASH FLOW on date 1 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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