Mary is considering opening a hobby and craft store. Mary plans to operate the business for six years. Mary requires a minimum 6% return on this investment. Ignore income taxes in this problem.) The data pertaining to her investment opportunity are: Cost of equipment $ 175,000 Working capital needed $ 185,000 Annual cash inflow from sales $ 190,000 Annual cash outflow for operating costs $ 145,000 Salvage value of equipment $ 20,000
Mary is considering opening a hobby and craft store. Mary plans to operate the business for six years. Mary requires a minimum 6% return on this investment. Ignore income taxes in this problem.) The data pertaining to her investment opportunity are:
Cost of equipment $ 175,000
Annual
Annual
Salvage value of equipment $ 20,000
Mary plans to operate the business for six years. Mary requires a minimum 6% return on this investment. What is the TOTAL cash inflow that comes JUST in year 6? Do NOT include the annual cash flows from the earlier problem.
Net present value is the value of investment of the company in the present market. Whereas, cash flow represents the cash inflow and outflow of the company due to operating, financing, and investing activities.
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