Question
Your company is investigating a project that will produce skateboards for the next 4 years for the Hungarian Olympic team. You estimate the cost of
Your company is investigating a project that will produce skateboards for the next 4 years for the Hungarian Olympic team. You estimate the cost of the needed equipment to produce the skateboards is $200,000, and the equipment will have an after-tax salvage value of $46,000. The accounting department and production operations department have estimated that the annual Operating Cash Flow generated by the project will be $93,165, and that the company must invest $25,000 into Net Working Capital immediately. This investment in NWC, however, will be recovered at the end of the project.
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