Change in NWC Example

Change in NWC Example - $ 195,400 $ 340,000 $ In-Class...

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Change in NWC Example 1 Change NWC = Ending NWC – Beginning NWC Ending NWC = $9,130 - $6,860 = $2,270 Beginning NWC = $10,454 - $9,406 = $1,048 Change in NWC = $2,270 - $1,048 = $1,222
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Project Cash Flows Later in the course, we will analyze these three sources of cash flows to decide if a firm should undertake a project. We’ll look at cash flows like this: 2 Year 0 1 2 3 4 5 Operating Cash Flows - $ 195,400 $ 195,400 $ 195,400 $ 195,400 $ 195,400 $ Net Capital Spending (548,000) $ - $ - $ - $ - $ 106,600 $ Change in Net Working Capital (38,000) $ - $ - $ - $ - $ 38,000 $ Project Cash Flows (586,000) $ 195,400 $ 195,400 $ 195,400
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Unformatted text preview: $ 195,400 $ 340,000 $ In-Class Exercises Calculating Cash Flows From Accounting Information Like most investments, the project under consideration for a firm is in addition (above and beyond) to its core business. We are interested in the incremental cash flows (inflows and outflows) that are associated with the new project only. 3 Finance Cash Flow From Accounting Information To-Dos Review Chapter 2 and Chapter 2 slides. Do Prepping for Exams and Problems in book or MyFinance Lab. Read Chapter 9 and Chapter 9 slides. 4 Appendix 5...
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Change in NWC Example - $ 195,400 $ 340,000 $ In-Class...

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