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Home / Questions / Initial Investment CashFlows 1.) Kornel kitchens wants to upgrade theircomputing infrastr

Initial Investment CashFlows 1.) Kornel kitchens wants to upgrade theircomputing infrastr

Initial Investment CashFlows

1.) Kornel kitchens wants to upgrade theircomputing infrastructure. the required equipment costs $350,000.they will also need to pay $15,000 to ship the systems to theirlocation and pay an additional $50,000 to get the systems up andrunning. They hope to sell some old computers and anticipaterecieving $25,000 (after-tax) for the used equipment. What is theprojects initial investement outlay (cash flow at time0).

I THINK THE ANSWER IS $390,000. IF I AM CORRECT COULD YOU STILLTELL ME WHAT TO DO. PLEASE SHOW ALL WORK.

2.) kornel kitchens is considering a porjectto launch a new line of kitchen cabinets. Most of kornel'scustomers pay on credit so accounts recievable are expected toinrease by $75,000. Inventory and accounts payable are alsoexpected to increase by $45,000 and $15,000, respectively. What iskornel's initial investment outlay for net workingcapital.?

I THINK THE ANSWER IS $135,000. IF I AM CORRECT COULD YOU STILLTELL ME WHAT TO DO. PLEASE SHOW ALL WORK. I REMEMBER THAT CERTAINTHINKS ARE EXCLUDED FROM THINGS SO IF YOU COULD LET ME KNOW ABOUTTHAT IT WOULD BE AWESOME

3.) Vitex Vitamins is considering a project that will enable themto reduce net working capital. Specifically, they are consideringan automated invetory control system that will enable them toreduce invetory by $80,000. They system is expected to have noimpact on any other current asset or current liability accounts.What is vitex's initial cash flow for net workingcapital?

I THINK THE ANSWER IS $-80,000 IF I AM CORRECT COULD YOU STILL TELLME WHAT TO DO. PLEASE SHOW ALL WORK.

Dec 04 2019 View more View Less

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