Time 127000 127000 20000 147000 147000 investment

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Unformatted text preview: ( 20,000) (147,000) (147,000) + (Investment in working capital) + After-tax proceeds from sale of old asset After-tax Net Initial Outlay Net Step 1: Evaluate Cash Flows Step a) Initial Outlay: What is the cash flow at a) Initial “time 0?” “time (127,000) (127,000) + ( 20,000) (147,000) (147,000) + ( 4,000) + After-tax proceeds from sale of old asset After-tax Net Initial Outlay Net Step 1: Evaluate Cash Flows Step a) Initial Outlay: What is the cash flow at a) Initial “time 0?” “time (127,000) (127,000) + ( 20,000) (147,000) (147,000) + ( 4,000) + 0 Net Initial Outlay Net Step 1: Evaluate Cash Flows Step a) Initial Outlay: What is the cash flow at a) Initial “time 0?” “time (127,000) (127,000) + ( 20,000) (147,000) (147,000) + ( 4,000) + 0 ($151,000) ($151,000) purchase price of asset shipping and installation depreciable asset net working capital proceeds from sale of old asset net initial outlay Step 1: Evaluate Cash Flows Step a) Initial Outlay: What is the cash flow at a) Initial “time 0?”...
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