1 answer

To expand its offerings, BreesCo will construct a factory and install equipment costing $1,915,055. To open...

Question:

To expand its offerings, BreesCo will construct a factory and install equipment costing $1,915,055. To open the factory, the company will invest 445,828 is new inventory, receivables will increase by $227,012, and payables will increase by $124,116. Assume the building & equipment will be worthless when the store closes. What is the appropriate time 0 cash flow? (Enter the magnitude of your response rounded to the nearest dollar


Answers

Basic price of machine add: increase in NWC Total initial investment $1,915,055 -$548,724 -$2,463,779) -(445828+227012-124116

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