Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
Hello, i need to know (changes in Networking capital), i have supplied the below information; Life of the project = 5 years initial investment =
Hello,
i need to know (changes in Networking capital), i have supplied the below information;
Life of the project = 5 years
initial investment = 100,000,000
Number of units produced each year is;
0
1 = 2000
2 = 3000
3 = 5000
4 = 4000
5 = 3000
Cost per unit per year is;
0 =
1 = $63,000
2 = $50,000
3 = $69,000
4 = $85,000
5 = $72,000
Variable Costs per unit per year -$ 30,000
Fixed Cost (incl Marketing) - $ 10,000,000
Rent foregone - $ 1,200,000
salvage Value $ 15,000,000
Depreciation (10%) - $ 20,000,000
Tax rate: 30%
Please show how to work Changes in NWC,
thank you for assistance