Question
The total initial investment (purchase, modification and investment in net operating working capital) will be $6,000. The machine will result in operating cash flow of
The total initial investment (purchase, modification and investment in net operating working capital) will be $6,000.
The machine will result in operating cash flow of $2,400 per year for three years.
When the machine is soldat time period three the net sale price will be $1800. The firm will also recover the investment in net working capital of $609.
What is the net present value of the investment if the required return is 12%?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th edition
9781259278617, 77861647, 1259278611, 978-0077861643
