Question

Investment | -$3,454,000 | |||

Net working capital change | -$ 275,000 | $ 275,000 | ||

Operating cash flow | $1,357,000 | $1,357,000 | $1,357,000 | |

Salvage | $ 249,000 |

Should Brawn accept or reject this project at an adjusted WACC of 7.497.49%, 9.499.49%, or 11.4911.49%?

Answer #1

Investment minus$9 comma 272 comma 869 Net working capital
change minus$739 comma 000 $739 comma 000 Operating cash flow $3
comma 232 comma 000 $3 comma 915 comma 000 $4 comma 528 comma 000
Salvage $539 comma 000 At what adjusted WACCs will the company
accept this project? Hint: Find the IRR of the project, and use
it as the maximum adjusted WACC for accepting the project.

For project A, the cash flow effect from the change in net
working capital is expected to be -1,100 dollars at time 2, the
level of net working capital is expected to be 1,000 dollars at
time 0, and the level of net working capital is expected to be
1,100 dollars at time 2. What is the cash flow effect from the
change in net working capital expected to be at time 1?

For project A, the cash flow effect from the change in net
working capital is expected to be -700 dollars at time 2 and the
level of net working capital is expected to be 1,400 dollars at
time 1. What is the level of current liabilities for project A
expected to be at time 2 if the level of current assets for project
A is expected to be 4,400 dollars at time 2?
For project A, the cash flow effect...

For project A, the cash flow effect from the change in net
working capital is expected to be -100 dollars at time 2 and the
level of net working capital is expected to be 1,600 dollars at
time 1. What is the level of current liabilities for project A
expected to be at time 2 if the level of current assets for project
A is expected to be 2,900 dollars at time 2?
For project A, the cash flow effect...

For project A, the cash flow effect from the change in net
working capital is expected to be 700 dollars at time 2 and the
level of net working capital is expected to be 2,200 dollars at
time 2. What is the level of current liabilities for project A
expected to be at time 1 if the level of current assets for project
A is expected to be 8,300 dollars at time 1?

For project A, the cash flow effect from the change in net
working capital is expected to be -300 dollars at time 2 and the
level of net working capital is expected to be 1,800 dollars at
time 2. What is the level of current assets for project A expected
to be at time 1 if the level of current liabilities for project A
is expected to be 4,700 dollars at time 1?

For project A, the cash flow effect from the change in net
working capital is expected to be -900 dollars at time 2 and the
level of net working capital is expected to be 1,600 dollars at
time 2. What is the level of current assets for project A expected
to be at time 1 if the level of current liabilities for project A
is expected to be 4,900 dollars at time 1?

For project A, the cash flow effect from the change in net
working capital is expected to be -500 dollars at time 2 and the
level of net working capital is expected to be 2,100 dollars at
time 1. What is the level of current liabilities for project A
expected to be at time 2 if the level of current assets for project
A is expected to be 4,800 dollars at time 2?

For project A, the cash flow effect from the change in net
working capital is expected to be 300 dollars at time 2 and the
level of net working capital is expected to be 2,500 dollars at
time 2. What is the level of current assets for project A expected
to be at time 1 if the level of current liabilities for project A
is expected to be 3,400 dollars at time 1?

For project A, the cash flow effect from the change in net
working capital is expected to be 100 dollars at time 2 and the
level of net working capital is expected to be 2,100 dollars at
time 2. What is the level of current assets for project A expected
to be at time 1 if the level of current liabilities for project A
is expected to be 5,900 dollars at time 1?

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