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Upstate Scientific Gauges management is considering an expansion to its plant in Rochester, New York. The firm's financial analysts have already partially completed a spreadsheet
Upstate Scientific Gauges management is considering an expansion to its plant in Rochester, New York. The firm's financial analysts have already partially completed a spreadsheet for the project which is presented below. The project requires a $ investment in new fixed assets which is expected to result in an aftertax disposal cash flow of $ at the end of the project. An investment in Net Working Capital of $ is also required, but $ this investment will be recaptured at the end of the project as the inventory is sold off. The firm's WACC Your task is to complete the project analysis. Hint: complete the spreadsheet using the available information. What is the NPV of the Upstate Scientific Gauges' project? Year I. Incremental Operating Cash Flows II New Working Capital Cash Flows III. Fixed Asset Cash Flows table
Upstate Scientific Gauges management is considering an expansion to its plant in Rochester, New York. The firm's financial analysts have already partially completed a spreadsheet for the project which is presented below.
The project requires a $ investment in new fixed assets which is expected to result in an aftertax disposal cash flow of $ at the end of the project. An investment in Net Working Capital of $ is also required, but $ this investment will be recaptured at the end of the project as the inventory is sold off. The firm's WACC Your task is to complete the project analysis. Hint: complete the spreadsheet using the available information.
What is the NPV of the Upstate Scientific Gauges' project?
Year
I. Incremental Operating Cash Flows
II New Working Capital Cash Flows
III. Fixed Asset Cash Flows
table
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