Business
Business, 12.04.2021 22:10, stodd9503

Ancer Food Enterprises, Inc. is considering launching a new corporate project. The company will have to make Capital Investments, Invest in Net Working Capital, and generate Cash Flows from Operating the new project. The Equipment required for the project will cost $8,700,000, will last for six years (the length of the project), and is estimated to be worthless at the end of its useful life. The initial investment in Net Working Capital needs to be $400,000, while the year-end investment in NWC for years 1 - 5 will be 20% of the current year's sales; ending Net Working Capital at the end of year six will be zero. Year One's sales will be $5,200,000 with annual growth at 5%; operating expenses will be 40% of sales. The company uses Straight-Line depreciation and has a Tax Rate of 22%. The appropriate discount rate for the risks involved is 12%. By how much does the Net Present Value of this project change if improved Working Capital Management cuts the required investment in Net Working Capital (at all timepoints) in half

answer
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 12:10, gingerham1
Laws corporation is considering the purchase of a machine costing $16,000. estimated cash savings from using the new machine are $4,120 per year. the machine will have no salvage value at the end of its useful life of six years and the required rate of return for laws corporation is 12%. the machine's internal rate of return is closest to (ignore income taxes) (a) 12% (b) 14% (c) 16% (d) 18%
Answers: 1
image
Business, 23.06.2019 15:00, Osorio5116
How should the environmental effects be dealt with when evaluating this project? the environmental effects should be ignored since the plant is legal without mitigation. the environmental effects should be treated as a sunk cost and therefore ignored. if the utility mitigates for the environmental effects, the project is not acceptable. however, before the company chooses to do the project without mitigation, it needs to make sure that any costs of "ill will" for not mitigating for the environmental effects have been considered in the original analysis. the environmental effects should be treated as a remote possibility and should only be considered at the time in which they actually occur. the environmental effects if not mitigated would result in additional cash flows. therefore, since the plant is legal without mitigation, there are no benefits to performing a "no mitigation" analysis.
Answers: 1
image
Business, 23.06.2019 18:30, liubitsaghn2145
You have decided to save 20 percent of your income for the next two years. assuming you bring home $125 a week, how much will you save over that time?
Answers: 1
image
Business, 23.06.2019 21:30, retros133
Explain what is meant when it is said that "data vary". how does the variability affect the results of statistical analysis?
Answers: 3
Do you know the correct answer?
Ancer Food Enterprises, Inc. is considering launching a new corporate project. The company will have...

Questions in other subjects:

Konu
Mathematics, 15.09.2021 05:40
Konu
History, 15.09.2021 05:40