Computation of Net Cash Flows for the new product, Finance, Other Engineering

Assignment Help:
Computation of Net Cash Flows for the new product:

$ In 000
Year 0 1 2 3 4 5 6
1. Investment -1,000 0 149 482 546 462 365
2. Profit after tax 250 188 141 105 79 59
3. Depreciation -20 -10 -20 -20 0 40
4. ? NWC 240 317 603 651 581 581
5. Cash flows From operations (2 + 3 + 4) 127
6. After-tax SV [100 - .35(100-178)]
7. Net cash flows (1 + 5 + 6) -1020 240 317 603 651 581 581
8. Present value factor at 18% 1000 .847 .718 .609 .516 .437 .370
9. Present value (8 × 9) -1020 203 228 367 336 254 215
10. NPV +583
The net cash flows may be summarised as follows:

Year 0 1 2 3 4
5 6
Net cash flows 1020 240 317 603 651 581 581

Related Discussions:- Computation of Net Cash Flows for the new product, Finance

Invalidation of certificate of airworthiness, INVALIDATION OF CERTIFICATE O...

INVALIDATION OF CERTIFICATE OF AIRWORTHINESS Listed below are the four major reasons why a Certificate of Airworthiness could become invalid. There may be other specific reason

Difference between elastic and plastic deformation, Q. State difference bet...

Q. State difference between elastic and plastic deformation. Ans. Elastic deformation: Elastic deformation is that the part of the deformed material, when the applied load is

Manufacturing definition and its importance, Economic Definition :  Manufa...

Economic Definition :  Manufacturing increase the value of product. Technological Definition :  Manufacturing is a process which gives required strength, shape and size of t

Electrical de-icing system maintenance, ELECTRICAL DE-ICING SYSTEM MAINTENA...

ELECTRICAL DE-ICING SYSTEM MAINTENANCE: Tests of the system must be carried out when the servicing schedule required it or when a component has been replaced.  Typical tests ar

TANGENT GALVANOMETER, WHY THE NEEDLE OF TANGENT GALVANOMETER DEFLECT WITH I...

WHY THE NEEDLE OF TANGENT GALVANOMETER DEFLECT WITH INCREASING OR DECREASING CURRENT?

Linear lateral dynamics, Linear lateral dynamics The second order (two ...

Linear lateral dynamics The second order (two degree of freedom) Dutch-Roll approximation is an approximation to the abovefourth order system for the Dutch Roll dynamics. A jus

Liquid crystal display (lcd), Liquid crystal display (lcd): Liquid Crys...

Liquid crystal display (lcd): Liquid Crystal Displays (LCD) are not actually light sources - they generate no light, merely filtering incident light, in a controlled manner.  T

Engineering economices, 2. A contractor has both a 3-cy and a 5-cy shovel i...

2. A contractor has both a 3-cy and a 5-cy shovel in the equipment fleet. Select the minimum size shovel that will excavate 400,000bcy of common earth in a minimum of 130 working d

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd