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Financial Management, Superior Manufacturing
Essay specific features
Written by:
Michael E
Date added:
September 3, 2011
Level:
University
Grade:
A
No of pages / words:
4 / 1080
Was viewed:
7466 times
Rating of current essay:
Essay content:
Then Working Capital Change for each year Yi is: this is a study guide, not a cheat sheet.
ChWCi = Previous Year WC - Current WC = 0 (for i=1 to 7) and
ChWC0 = -$200,000
The working capital is recovered, this means that for the end of the year 8 it will be zero or: this is a study guide, not a cheat sheet...
displayed 300 characters
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this is a study guide, not a cheat sheet.
-Revenues:
For the first year the expected revenues will be:
R1 = $950,000
For the years Yi (i=2 to 8):
Ri = $1,500,000
-Expenses:
Indirect incremental costs will be $80,000 all the eight years.
For each year the direct costs will be 0.55*Ri.
Then for each year Yi (i=1 to 8), the expenses (Ei) will be:
this is a study guide, not a cheat sheet...
displayed 300 characters
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