Ask Question, Ask an Expert


Ask Basic Finance Expert

Brook Heaven steel mill is considering installing a new molding machine which is expected to produce operating cash flows of $73,000 a year for 7 years. At the beginning of the project, inventory will decrease by $16,000, accounts receivables will increase by $21,000, and accounts payable will increase by $15,000. All net working capital will be recovered at the end of the project. The initial cost of the molding machine is $249,000. The equipment will be depreciated straight-line to a zero book value over the life of the project. The equipment will be salvaged at the end of the project creating a $48,000 aftertax cash flow. At the end of the project, net working capital will return to its normal level. What is the net present value of this project given a required return of 14.5 percent?

A. $77,211.20

B. $79,418.80

C. $82,336.01

D. $84,049.74

E. $87,925.54

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M942355

Have any Question? 

Related Questions in Basic Finance

You have 50000 to start an education fund for your child

You have $50,000 to start an education fund for your child. You are expecting him/her to attend college 18 years from now. According to statistics, the expected amount you will need 18 years later should be $300,000. Wha ...

Portfolio management and performance evaluation1 using the

Portfolio Management and Performance Evaluation 1. Using the 30-years of monthly data from 1986-2015 contained in the first tab of the spreadsheet for this assignment ("Homework Assignment #2 Data"), do the following: (a ...

When your governor took office 100000 children in your

When your governor took office, 100,000 children in your state were eligible for Medicaid and 200,000 children were not. Now, thanks to a large expansion in Medicaid, 150,000 children are eligible for Medicaid and 150,00 ...

It is not difficult to find examples in news media of

It is not difficult to find examples in news media of organizations' and individuals' perceived or actual ethical abuses. Write 1-2 pages on the below topics. Find a recent news story in which there was unethical conduct ...

For my country imports are the good thing about

"For my country, imports are the good thing about international trade, whereas exports are more like the necessary evil." Do you agree or disagree? Why?

Fomc what are the main goals of the federal open market

FOMC : What are the main goals of the Federal Open Market Committee (FOMC)? How does it attempt to achieve these goals?

Robert shiller of yale university has suggested a variation

Robert Shiller of Yale University has suggested a variation on ARMs in which mortgage interest rates are tied to inflation, not to short-term interest rates. Discuss the pros and cons of this idea for banks and for borro ...

It computers purchased computer chips from computech a

IT computers purchased computer chips from computech, a French electronics and was billed FF250 million payable in three months. Currently the spot exchange rate is FF100/$ and the three months money market interest rate ...

Essay questions1 npvaccording to the text the npv rule

Essay Questions 1. NPV According to the text, the NPV rule states that "An investment should be accepted if the NPV is positive and rejected if it is negative." What does an NPV of zero mean? If you were a decision-maker ...

Assignment -part a-the project involves writing a

Assignment - Part A- The project involves writing a commentary on Warren E. Buffett's Berkshire shareholder letter. The project is to be completed individually. Shareholder letters (1977 - 2014) will be randomly selected ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate