Te cost of the machine was 2150000 but they spent 200000


Bar-All Locks has just purchased a casting machine for a ultra-security locking system. The cost of the machine was $2,150,000 but they spent $200,000 investigating whether or not there would be business for this type of locking system before they decided to evaluate this new investment. The machine cost $250,000 to make it ready for production.

What is the initial cash flow for this investment?

 

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Te cost of the machine was 2150000 but they spent 200000
Reference No:- TGS0608835

Expected delivery within 24 Hours