Florida Atlantic University Operations And Supply Chain Management Assignment Help - Bygrave corp

Question - Bygrave corp is considering a 600,000 capital investment in equipment. Bygrave intends to
depreciate the equipment on a straight-line basis over three years. Assume that the equipment has no
salvage value at the end of the projcts life. To support the project, bygrave expects accounts
receivables to increase by 75,000 inventory to increase by 45,000 and accounts payable to increase
by 55,000. the investment in net working capital will be fully recovered at the end f the projects life.
1 . W hat is the projects total initial investment ( including cash flow from capital spending and changes
in net working capital? 2. Bygrave forecasts incremental annual sales revenue of 900,000. similarly,
bygrave expects total variable costs to incr ...Read More ease by 500,000 and total fixed costs to increase by
80,000. bygrave marginal tax rate is 35% what is the project annual operating cash flow ? 3. bygrave
estimates that this project has a required return of 15.0% what is the projects NPV? 4. what is the
projects IRR? ...Read Less

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