Question
the production manager gave you the following information, cost of new machine R650 000 installation costs R80 000 useful life 4 years, the profit before
the production manager gave you the following information,
cost of new machine R650 000
installation costs R80 000
useful life 4 years,
|
| the profit before depreciation and tax |
| Year 1 | R180,000 |
| Year 2 | R195,000 |
| year 3 | R210,000 |
| Year 4 | R235,000 |
the cost of capital is 10%
Depreciation is straight line,
tax rate is 30%.
calculate annual cash flow and NPV
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Financial Accounting For School Administrators Tools For School
Authors: Ronald E. Everett, Donald R. Johnson, Bernard W. Madden
3rd Edition
1610487710, 978-1610487719
