FIN 370

Mar 25th, 2014
Business & Finance
Price: $30 USD

Question description

Working capital requirements: There will be an initial working capital requirement of $100,000 just to get production started. For each year, the total investment in net working capital will be equal to 10% of the dollar value of sales for that year. Thus, the investment in working capital will increase during years 1 through 3, then decrease in year 4. Finally, all working capital is liquidated at the termination of the project at the end of year 5.

Depreciation method: Straight-line over 5 years assuming the plant and equipment have no salvage value after 5 years.


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(Top Tutor) Daniel C.
School: UC Berkeley

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Mar 25th, 2014
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