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

Net present value method: npv, Discounted cash flow methods Net present val...

Discounted cash flow methods Net present value method: NPV It is one of the classic methods of evaluating the investment project. Here each potential projects value is find out its

Sonic airflow - aircraft maintenance, Sonic airflow though divergent and co...

Sonic airflow though divergent and convergent ducts When a flow of fluid (i.e. gas) flows at sonic speed through a convergent duct a shock wave forms at the exit area of the du

Derive, derive the power in case of r-l circuit

derive the power in case of r-l circuit

Resection, method of solving resection

method of solving resection

Communication engineering, I am preparing for a seminar ... but I am search...

I am preparing for a seminar ... but I am searching for a very good topic. Can you help me to get a topic in wireless communication . i want to know what are the latest technologie

Analog digital converter , Analog digital converter  Analog digital con...

Analog digital converter  Analog digital converter digitises the conditioned signal and presents it in a digital form, which is more convenient for long distance transmission,

Matrix stiffness method, how to get the deflection of a frame when a load W...

how to get the deflection of a frame when a load W s acting on a corner of the frame

Duty cycle, how to modulate duty cycles

how to modulate duty cycles

Heat transfer, Q. 1 A 50 cm diameter pipeline in the Arctic Carries hot oi...

Q. 1 A 50 cm diameter pipeline in the Arctic Carries hot oil at 30 0C and exposed to a coefficient surrounding temperature of -20 0C. Special powder insulation 5 cm thick surround

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