Calculate the net cash flow for each of the year in question

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Point 1: A machine costs $100,000 to purchase. In addition a further $20,000 working capital will be required at the start of the project. The project is expected to last 4 years and to have a scrap value of $20,000 at the end of its useful life. Net operating cash flows are expected to be $30,000 p.a. for the first 2 years and $40,000 p.a. for the following years. All operating flows are to be assumed to occur at the ends of year.

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Question 1: Calculate the net cash flow for each of the years in question.

Reference no: EM132487330

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