MGMT310_lecture20 - Things...

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hings to consider when evaluating a project: Things to consider when evaluating a project: Write out all relevant $$ information in a time table Consider tax implications Pay tax on sales, save tax on expenses Don’t forget, sale of fixed asset requires “special” treatment Don’t forget about NWC changes d d’ t ft th t ii NWC if/ h jt And don’t forget that you recover remaining NWC if/when project ends efore adding up cash flows for each time period, think about Before adding up cash flows for each time period, think about which items are actual cash flows
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oncept check Concept check You own a fruit stand. You currently sell 100 apples per year at $2 each, and 300 bananas per year at $1 each. You are thinking of selling mangos in addition to your current fruits. You expect that you will be able to sell 100 mangos per year at $3each. If you sell these mangos, you expect that you will sell 20 fewer apples. On the other hand, you expect that you will be able to sell 50 more bananas (mangos go well with bananas). What is the appropriate annual sales amount to use when id i hth t ll ? considering whether or not tosell mangos?
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ractice problems Practice problems Chapter 10: (end of chapter problems) #1, 13, 17, 18, 25 Solutions will be posted on Katalyst
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ourse roadmap Course roadmap 1. This concludes ch. 10 (making capital investment decisions)
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This note was uploaded on 01/21/2011 for the course MGMT 310 taught by Professor Matthewjamesbarcaskey during the Spring '08 term at Purdue University-West Lafayette.

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MGMT310_lecture20 - Things...

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