Question 23 The Ford Corporation is looking at opening a small manufacturing facility in Richman to produce auto parts. The business is expected to last for 6 years. They expect start- up costs of $3,500,000. Expenses are expected to be $600,000 per year. Revenues will be $900,000 per year. The Ford Corporation estimates that they can sell the facility for $6,000,000 at the end of 6 years. Assume revenue occurs at the end of each year and expenses occur at the beginning of each year. What is the annual cash flow and how many times this cash flow repeated for? A) CO1=$900,000, F01=6 B) C01=$300,000o, F01=6 C) C01=$1,300,000 , F01=6 D) C01-$1,900,000 , F01-6 E) C01=$300,000, F01=5

Question 23 The Ford Corporation is looking at opening a small manufacturing facility in Richman to produce auto parts. The business is expected to last for 6 years. They expect start- up costs of $3,500,000. Expenses are expected to be $600,000 per year. Revenues will be $900,000 per year. The Ford Corporation estimates that they can sell the facility for $6,000,000 at the end of 6 years. Assume revenue occurs at the end of each year and expenses occur at the beginning of each year. What is the annual cash flow and how many times this cash flow repeated for? A) CO1=$900,000, F01=6 B) C01=$300,000o, F01=6 C) C01=$1,300,000 , F01=6 D) C01-$1,900,000 , F01-6 E) C01=$300,000, F01=5

Fundamentals of Financial Management (MindTap Course List)

14th Edition

ISBN:9781285867977

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter12: Cash Flow Estimation And Risk Analysis

Section: Chapter Questions

Problem 16P: REPLACEMENT CHAIN The Fernandez Company has an opportunity to invest in one of two mutually...

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