Present values of the relevant investment cash flows

Assignment Help Financial Management
Reference no: EM131899364

Healthy Potions, Inc., is considering investing in a new production line for eye drops. Other than investing in the equipment, the company needs to increase its cash and cash equivalents by $10,000, increase the level of inventory by $35,000, increase accounts receivable by $25,000, and increase accounts payable by $5,000 at the beginning of the project. Healthy Potions will recover these changes in working capital at the end of the project 13 years later. Assume the appropriate discount rate is 15.0 percent. What are the present values of the relevant investment cash flows? (Round answer to 2 decimal places, e.g. 15.25.)

Present Value: $___________

Reference no: EM131899364

Questions Cloud

What is the change in momentum : What is the change in momentum? What is the impulse?What is the average force on the wall during the crash?
What are the futurist projection for the use of smart cards : Explain how smart cards can reduce fraud and streamline administrative procedures. What are the futurist projection for the use of smart cards in 5 to 10 years?
Constant acceleration a reasonable approximation : If your answer is "no", is assuming a constant acceleration a reasonable approximation? Explain.
The importance of maintaining accurate employee recods : Provide an example of formal and an example of informal documentation that would normally be maintained in an employee file.
Present values of the relevant investment cash flows : What are the present values of the relevant investment cash flows?
How does society view millenniums : Using the concepts of Social Perception & Values & Attitudes how does society view millenniums and what are the implication's for this generation.
What is the magnitude of the electrostatic force : What is the magnitude of the electrostatic force between the 6.4 mC charge and the -9.6 mC charge.
Use the darcy-weisbach equation to estimate friction losses : CIVE 3833 Pipe Network Computing Assignment. Use the Darcy-Weisbach Equation to estimate friction losses. Report for pipe flex tables showing pipe flow rates
Discuss remark in the context of concepts described : Discuss this remark in the context of the concepts described in the chapter.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd