Alpha prime is considering installing new molding machine

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Alpha Prime is considering installing a new molding machine which is expected to produce operating cash flows of $73,000 a year for 7 years. At the beginning of the project, inventory will decrease by $16,000, accounts receivables will increase by $21,000, and accounts payable will increase by $15,000. All net working capital will be recovered at the end of the project. The initial cost of the molding machine is $249,000. The equipment will be depreciated straight-line to zero book value over the life of the project. The equipment will be salvaged at the end of the project creating a $48,000 after tax cash flow. At the end of the project, net working capital will return to its normal level. Calculate the total initial cash flow at time 0, include all relevant cash flows. (Round to a whole number, and enter a negative value)

Reference no: EM131575494

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