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You are working on a bid to build two apartment buildings a year for the next 5 years for a local college. This project requires the purchase of $750,000 of equipment that will be depreciated using 5 year MACRS. The equipment can be sold at the end of the project for $325,000. You will also need $146,000 in net working capital over the life of the project. The fixed costs will be $628,000 a year and the variable costs will be $1,298,000 per building. What is your cash flow in time 0 for this investment?

Financial Management, Finance

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