Ask Question
25 December, 22:00

Timco is considering the purchase of a new machine. The machine costs 34,000. It will cost 5000 to modify and install it. We will need to spend 4000 on net working capital. We also just spent 2000 on a new sign for our office building. Find the year zero cash flow for the machine

+5
Answers (1)
  1. 26 December, 00:20
    0
    year zero cash flow 38,000

    Explanation:

    the year zero cash flow will consider all the necessary cost to get the machine and the project associated with it ready for use:

    machine cost: 34,000

    increase in working capital 4,000

    year zero cash flow 38,000

    the new sign in the office building is not a cost related to the project. It is not revelant therefore, we ignore it.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Timco is considering the purchase of a new machine. The machine costs 34,000. It will cost 5000 to modify and install it. We will need to ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers