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

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

Internal rate of return irr, Internal rate of return IRR In case of IRR met...

Internal rate of return IRR In case of IRR method cash flow are analyzed taking into account the magnitude and the timing. IRR is that discount rate which gives a net present value

Information yechnology, what is software engineering

what is software engineering

Java , why we need EJB

why we need EJB

Cash flow diagrams, Cash Flow Diagrams We will use a cash flow approac...

Cash Flow Diagrams We will use a cash flow approach to analyze the flow of money through out a planning horizon. A cash flow occurs when money actually change hands. We will u

What is accounting management?, What is accounting management? Managemen...

What is accounting management? Management accounting is worried with offering details to supervisors - that is, individuals within a company who immediate and control its functi

Electronics, what are basic think to select the bjt as switch

what are basic think to select the bjt as switch

Fire protection test, Go to https://blackboard.newhaven.edu/ user: user:...

Go to https://blackboard.newhaven.edu/ user: user:Aaldo6 Pass:1992May239645 Class: fire 2209 Occup safety$ hilt-fire take the test its one hour test multiple choices its due t

Partial derivatives, #question.y = lny^2/x^2+Y^2

#question.y = lny^2/x^2+Y^2

Zener diode, easy defination of zener diode nd its application and characte...

easy defination of zener diode nd its application and characteristics ?

Plastics, what are the key polymeric structural features to most elastomer...

what are the key polymeric structural features to most elastomeric material

Write Your Message!

Name

Email id

Message

Verfication Code

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!

Submit Assignment

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