What is the total cash flow at the start of the project

Assignment Help Financial Accounting

Reference no: EM133265146

Question: The net present value profile is a graphical relationship of an investment's:

A)initial cost and its net present value.

B)time to maturity and its net present value.

C)market value and its time to completion.

D)rate of return and its time to completion.

E)discount rate and its net present value.

WTF Ltd is considering replacing its old fully depreciated forklift with a new model. Two months ago, WTF paid LMAO Consulting $14,000 in consulting fees to help them evaluate the various forklifts on offer. Your manager suggests this consulting fee be spread over the life of the project. The cost of the recommended forklift is $41,000. The consultants estimate the old forklift will be able to be sold today for a salvage value of $8,000. In addition, WTF has estimated it will need to increase its holdings of inventory from $8,000 to $37,000 at the start of the project. The company tax rate is 30%. What is the total cash flow at the start of the project (report your answer to the nearest dollar)?

Reference no: EM133265146

Questions Cloud

Compare and contrast marx theory of strati?cation : A. Compare and contrast Marx's theory of strati?cation with that of Weber. Which theory do you think best explains stratification in the United States?

Identify stock exchange symbol : Identify stock exchange symbol. Then go onto a web-based stock exchange listing of the market for the day, locate the symbols

We need to talk about an injustice : Read "The Rich Get Richer and the Poor Get Prison" and Witt 6 (Deviance). Then watch "We Need to Talk about an Injustice," by Bryan Stevenson.

Describe the british empire and its american colonies : Question 1 - Describe the British empire and its American colonies. Explain WHY and HOW England raised money from the colonist

What is the total cash flow at the start of the project : WTF has estimated it will need to increase its holdings of inventory from $8,000 to $37,000 at the start of the project. The company tax rate is 30%.

Completing a genogram with a client : As a therapist what should be consider when completing a genogram with a client? ( client had abusive relationships in each generation)

What unique positioning did zappos adopt : American Airlines 191 Crash Video Discussion - What unique positioning did Zappos adopt in order to develop a competitive advantage

Certificate of formation for texas limited liability company : Homer of 742 Evergreen Terrace, Springfield, Illinois 62701 will be the organizer of a new Texas limited liability company to be called Doh- Nuts and More, LLC.

What are the functions of securities clearing corporation : What are the functions of Securities Clearing Corporation of the Philippines (SCCP) in the Philippine Stock Market?

User Account

All Pages