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Home / Questions / Q1) a) DYI Construction Co. is considering a new inventory system that will cost \$750,000...

# Q1) a) DYI Construction Co. is considering a new inventory system that will cost \$750,000. The system is expected to generate positive cash flows over the next four years in the amounts

Q1)
a)

DYI Construction Co. is considering a new inventory system that will cost \$750,000. The system is expected to generate positive cash flows over the next four years in the amounts of \$350,000 in year one, \$325,000 in year two, \$150,000 in year three, and \$180,000 in year four. DYI's required rate of return is 8%. What is the net present value of this project?

b)
if the Net Income for 2018 = 48,000.and the retained earnings at the beginning of 2018 = 90,000 and the retained earnings at the end of 2018 = 94,000

Then the dividends would be

c)

if the Net Income for 2018 = 48,000.and the retained earnings at the beginning of 2018 = 90,000 and the retained earnings at the end of 2018 = 94,000

Then the dividends would be

Apr 15 2021 View more View Less

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