Session Inc. is expanding its manufacturing plant, which requires an investment of 4,000,000 is new equipment and plant modifications. The company’s sales are expected to increase by 3,000,000 per year as result of the expansion. Cash investments in current assets average 30% of sales; accounts payable and other current liabilities are 10% of sales. Trade in value of old machines is 600,000. Compute for the net investment cost for Session
Session Inc. is expanding its manufacturing plant, which requires an investment of 4,000,000 is new equipment and plant modifications. The company’s sales are expected to increase by 3,000,000 per year as result of the expansion. Cash investments in current assets average 30% of sales; accounts payable and other current liabilities are 10% of sales. Trade in value of old machines is 600,000. Compute for the net investment cost for Session
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Session Inc. is expanding its manufacturing plant, which requires an investment of 4,000,000 is new equipment and plant modifications. The company’s sales are expected to increase by 3,000,000 per year as result of the expansion. Cash investments in current assets average 30% of sales; accounts payable and other current liabilities are 10% of sales. Trade in value of old machines is 600,000. Compute for the net investment cost for Session Inc?
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