Round all answers to whole dollars.
A proposed project is expected to decrease accounts receivable by $10,000, decrease inventory by $4,000,
and increase accounts payable by $6,000. What is the amount of the initial cash flow for this project?
Last year, Bottlers, Inc. purchased land located beside their factory at a price of $1,500,000 plus $250,000 in
real estate fees. Today, the land has a market value of $2,000,000. The company is now considering building
a new warehouse on that land. The construction cost of the warehouse is estimated at $675,000. In addition,
$90,000 worth of grading will be required to prepare the construction site. What is the initial cash flow of this
You are considering a project that will generate sales of $89,000, costs of $56,000, and annual depreciation of
$26,000. What is the value of the operating cash flow if the tax rate is 34 percent?