What is the net present value of working capital

Reference no: EM131931695

Question: Aberdeen Outboard Motors is contemplating building a new plant. The company anticipates that the plant will require an initial investment of $ 2.00 million in net working capital today. The plant will last 10 years, at which point the full investment in net working capital will be recovered. Given an annual discount rate of 6.0 %, what is the net present value of this working capital? investment?

Reference no: EM131931695

Questions Cloud

Develop a cash flow diagram : For the accident of Gulf of Mexico Oil Spill. British Petroleum (BP) took the following steps to pay for the serious consequences: (i = 7% per quarter)

What is the cycle time for the welding process : If the system operates 8 hours a day with an average of four switchboards being ordered every working day, what is the takt time?

Compute the expected return to the bondholder : a. In BAD times; what will the bondholder receive? b. Compute the expected return to the bondholder.

Calculate the gross tax levy assessed on october 11, 2014. : Calculate the gross tax levy assessed on October 11, 2014. Prepare the October 11, 2014 entry at Governmental Activities to record the property tax assessment.

What is the net present value of working capital : Aberdeen Outboard Motors is contemplating building a new plant. The company anticipates that the plant will require an initial investment of $ 2.00 million.

How much would it be worth paying for the information : How much would it be worth paying for the information from the test? (Assume that the company's objective is to maximize expected pro?t.)

Intellectual property rights : What are intellectual property rights? How have changes in technology impacted the ability to protect intellectual property rights?

How much gross fixed assets did abc buy : ABC started the year with 3,381,000 of net fixed assets and ended the year with 2,854,000 of net fixed assets. Depreciation expenses during the year.

Why is it possible to write an executive summary only : Why is it possible to write an executive summary only after you have written the main body of your business plan?

User Account

All Pages