Blossom, Inc., is considering investing in a new production line
for eye drops. Other than investing in the equipment, the company
needs to increase its cash and cash equivalents by $10,000,
increase the level of inventory by $33,000, increase accounts
receivable by $25,000, and increase accounts payable by $5,000 at
the beginning of the project. Blossom will recover these changes in
working capital at the end of the project 9 years later. Assume the
appropriate discount rate is 10percent. What are the present values
of the relevant investment cash flows? (Do not round
intermediate calculations. Round answer to 2 decimal places, e.g.
15.25.)
Present value | $enter the Present value in dollars rounded to 2 decimal places |
=Working capital investment*(1-1/(1+discount rate)^t)
=(-10000-33000-25000+5000)*(1-1/1.1^9)
=-36281.85004
Blossom, Inc., is considering investing in a new production line for eye drops. Other than investing...
Sandhill, Inc., is considering investing in a new production line for eye drops. Other than investing in the equipment, the company needs to increase its cash and cash equivalents by $10,000, increase the level of inventory by $23,000, increase accounts receivable by $25,000, and increase accounts payable by $5,000 at the beginning of the project. Sandhill will recover these changes in working capital at the end of the project 10 years later. Assume the appropriate discount rate is 8 percent....
Blossom, Inc., is considering investing in a new production line for eye drops. Other than investing in the equipment, the company needs to increase its cash and cash equivalents by $10,000, increase the level of inventory by $25,000, increase accounts receivable by $25,000, and increase accounts payable by $5,000 at the beginning of the project. Blossom will recover these changes in working capital at the end of the project 14 years later. Assume the appropriate discount rate is 12 percent....
Sheridan, Inc., is considering investing in a new production line for eye drops. Other than investing in the equipment, the company needs to increase its cash and cash equivalents by $10,000, increase the level of inventory by $58,000, increase accounts receivable by $25,000, and increase accounts payable by $5,000 at the beginning of the project. Sheridan will recover these changes in working capital at the end of the project 14 years later. Assume the appropriate discount rate is 15 percent....
Problem 11.19 (Solution Video) Blossom, Inc., is considering Investing in a new production line for eye drops. Other than investing in the equipment, the company needs to increase its cash and cash equivalents by $10,000, increase the level of inventory by $33,000, increase accounts receivable by $25,000, and increase accounts payable by $5,000 at the beginning of the project, Blossom will recover these changes in working capital at the end of the project 9 years later. Assume the appropriate discount...
Sheridan, Inc., is considering investing in a new production line for eye drops. Other than investing in the equipment, the company needs to increase its cash and cash equivalents by $10,000, increase the level of inventory by $48,000, increase accounts receivable by $25,000, and increase accounts payable by $5,000 at the beginning of the project. Sheridan will recover these changes in working capital at the end of the project 8 years later. Assume the appropriate discount rate is 10 percent....
Problem 10.18 Healthy Potions, Inc., is considering investing in a new production line for eye drops. Other than investing in the equipment, the company needs to increase its cash and cash equivalents by $10,000, increase the level of inventory by $46,000, increase accounts receivable by $25,000, and increase accounts payable by $5,000 at the beginning of the project. Healthy Potions will recover these changes in working capital at the end of the project 9 years later. Assume the appropriate discount...
Problem 10.18 Healthy Potions, Inc., is considering investing in a new production line for eye drops. Other than investing in the equipment, the company needs to increase its cash and cash equivalents by $10,000, increase the level of inventory by $46,000, increase accounts receivable by $25,000, and increase accounts payable by $5,000 at the beginning of the project. Healthy Potions will recover these changes in working capital at the end of the project 9 years later. Assume the appropriate discount...
Sandhill, Inc., is considering investing in a new production line for eye drops. Other than investing in the equipment, the company needs to increase its cash and cash equivalents by $10,000, increase the level of inventory by $23,000, increase accounts receivable by $25,000, and increase accounts payable by $5,000 at the beginning of the project. Sandhill will recover these changes in working capital at the end of the project 10 years later. Assume the appropriate discount rate is 8 percent....
Question 6 --12 View Policies Current Attempt in Progress Blossom, Inc., is considering investing in a new production line for eye drops. Other than investing in the equipment, the company needs to increase its cash and cash equivalents by $10,000, increase the level of inventory by $25,000, increase accounts receivable by $25,000, and increase accounts payable by $5,000 at the beginning of the project. Blossom will recover these changes in working capital at the end of the project 14 years...
0/1 Jeek- Question 6 View Policies Show Attempt History Current Attempt In Progress X Your answer is incorrect. ort Carla Vista, Inc., is considering investing in a new production line for eye drops. Other than investing in the equipment, the company needs to increase its cash and cash equivalents by $10,000, increase the level of inventory by $41,000, increase accounts receivable by $25,000, and increase accounts payable by $5,000 at the beginning of the project. Carla Vista will recover these...