Jasper Metals is considering installing a new molding machine which is expected to produce operating cash flows of $67,000 per year for 8 years. At the beginning of the project, inventory will decrease by $25,600, accounts receivables will increase by $25,800, and accounts payable will increase by $18,600. At the end of the project, net working capital will return to thelevel it was prior to undertaking the new project. The initial cost of the molding machine is $285,000. 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 an aftertax cash flow of $72,000. What is the net present value of this project given a required return of 11.2 percent? rev: 03_26_2019_QC_CS-164044
A) $98,671
B) $113,435
C) $94,381
D) $109,315
E) $102,371
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Jasper Metals is considering installing a new molding machine which is expected to produce operating cash...
Jasper Metals is considering installing a new molding machine which is expected to produce operating cash flows of $67,000 per year for 8 years. At the beginning of the project, inventory will decrease by $25,600, accounts receivables will increase by $25,800, and accounts payable will increase by $18,600. At the end of the project, net working capital will return to the level it was prior to undertaking the new project. The initial cost of the molding machine is $285,000. The...
Jasper Metals is considering installing a new molding machine which is expected to produce operating cash flows of $70,500 per year for 9 years. At the beginning of the project, inventory will decrease by $29,600, accounts receivables will increase by $27,800, and accounts payable will increase by $20,100. At the end of the project, net working capital will return to the level it was prior to undertaking the new project. The initial cost of the molding machine is $300,000. The...
Jasper Metals is considering installing a new molding machine which is expected to produce operating cash flows of $63,000 per year for 7 years. At the beginning of the project, inventory will decrease by $22,400, accounts receivables will increase by $24,200, and accounts payable will increase by $17,400. At the end of the project, net working capital will return to the level it was prior to undertaking the new project. The initial cost of the molding machine is $273,000. The...
Jasper Metals is considering installing a new molding machine which is expected to produce operating cash flows of $55,000 per 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. At the end of the project, net working capital will return to the level it was prior to undertaking the new project. The initial cost of the molding machine is $249,000. The...
MC algo 6-32 Cash Flows And NPV Jasper Metals is considering installing a new molding machine which is expected to produce operating cash flows of $71,000 per year for 9 years. At the beginning of the project, inventory will decrease by $30,400, accounts receivables will increase by $28,200, and accounts payable will increase by $20,400. At the end of the project, net working capital will return to the level it was prior to undertaking the new project. The initial cost...
Help Save & Exit Submit 20 Jasper Metals is considering installing a new molding machine which is expected to produce operating cash flows of $56.000 per year for 7 years. At the beginning of the project, inventory will decrease by $16.800, accounts receivables will increase by $21.400, and accounts payable will increase by $15.300. At the end of the project. net working capital will return to the level it was prior to undertaking the new project. The initial cost of...
Moscow Moldings is considering installing a new molding machine which is expected to produce operating cash flows of $75,000 a year for 7 years. At the beginning of the project, inventory will decrease by $15,000, accounts receivable will increase by $35,000, 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 $280,000. The equipment will be depreciated straight-line to a zero book...
Company A 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 zero in book...
Moscow Moldings is considering installing a new molding machine which is expected to produce operating cash flows of $75,000 a year for 7 years. At the beginning of the project, inventory will decrease by $15,000, accounts receivable will increase by $35,000, 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 $280,000. The equipment will be depreciated straight-line to a zero book...
1 Moscow Moldings is considering installing a new molding machine which is expected to produce operating cash flows of $75,000 a year for 7 years. At the beginning of the project, inventory will decrease by $15,000, accounts receivable will increase by $35,000, 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 $280,000. The equipment will be depreciated straight-line to a zero...