Assume the appropriate discount rate is 13 percent what are


Healthy Potions, Inc., is considering investing in a new production line for eye drops. Other than investing in the equipment, the company needs to increase its cash and cash equivalents by $10,000, increase the level of inventory by $45,000, increase accounts receivable by $25,000, and increase accounts payable by $5,000 at the beginning of the project. Healthy Potions will recover these changes in working capital at the end of the project 9 years later. Assume the appropriate discount rate is 13 percent. What are the present values of the relevant investment cash flows? (Do not round intermediate calculations. Round answer to 2 decimal places, e.g. 15.25.) Present value is what?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Assume the appropriate discount rate is 13 percent what are
Reference No:- TGS02322551

Expected delivery within 24 Hours