Calculate the annual net cash in flows from the project


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Q: The Finney Company is reviewing the possibility of remodeling one of its showrooms and buying some new equipment to improve sales operations. The remodeling would cost $120,000 now and the useful life of the project is 10 years. Additional working capital needed immediately for this project would be $30,000; the working capital would be released for use elsewhere at the end of the 10-year period. The equipment and other materials used in the project would have a salvage value of $10,000 in 10 years. Finney's discount rate is 16%. What would the annual net cash in flows from this project have to be in order to justify investing in remodeling?

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Accounting Basics: Calculate the annual net cash in flows from the project
Reference No:- TGS02025399

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