Pioneer agro is considering installing a new extractor and

Assignment Help Finance Basics

Reference no: EM13616881

Pioneer Agro is considering installing a new extractor and grinding 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 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?

Reference no: EM13616881

Questions Cloud

Todd is able to pay 360 a month for 6 years for a car if : todd is able to pay 360 a month for 6 years for a car. if the interest rate is 6.7 percent how much can todd afford to

A parallel-plate capacitor has capacitance 050microf a how : a parallel-plate capacitor has capacitance 0.50microf.a how much energy is stored in the capacitor if it is connected

Suppose you have 35000 to invest youre considering : suppose you have 35000 to invest. youre considering miller-moore equine enterprises mmee which is currently selling for

Calculate the velocity of the target ball after the : a softball of mass 0.220kg that is moving with a speed of 7.6ms collides head-on and elastically with another ball

Pioneer agro is considering installing a new extractor and : pioneer agro is considering installing a new extractor and grinding machine which is expected to produce operating cash

Two billiard balls of equal mass undergo a perfectly : two billiard balls of equal mass undergo a perfectly elastic head-on collision. if one balls initial speed was 2.50 ms

A container has 20 litres of oxygen gas at 0 degrees : a container has 2.0 litres of oxygen gas at 0 degrees celsius and 1.0 atm pressurea how many moles of oxygen does it

Assume that temp force has a beta coefficient of 12 that : sam strother and shawna tibbs are senior vice presidents of mutual of seattle. they are co-directors of the companys

Let a be the subset of the plane r2 defined as the : let a be the subset of the plane r2 defined as the intersection of the first quadrant and the annulus between the

User Account

All Pages