Current location - Health Road Network - Medical equipment enterprise - A company introduces an assembly line with a total investment of $1,000,000, $600,000 at the beginning of the first year and $400,000 at the beginning of the second year, with a construction period of

A company introduces an assembly line with a total investment of $1,000,000, $600,000 at the beginning of the first year and $400,000 at the beginning of the second year, with a construction period of

A company introduces an assembly line with a total investment of $1,000,000, $600,000 at the beginning of the first year and $400,000 at the beginning of the second year, with a construction period of two years. There is no salvage value... The investment is $1.1 million, right?

Annual depreciation=110-10/10=100,000

Net cash flow per year during the period of use=60-45+10=250,000

25*(P/A,10%,10)*(P/S,10%,2)+30*(P/S,10%,12)-20*(P/S,10%,2)-40*(P/S. 10%,1)-70

=25*6.1446+30*0.3186-20*0.8264-40*0.9091-70

=766,500

The project's NPV is greater than 0 and is feasible.

For reference.

Related articles