Meals on Wings Inc., which supplies prepared meals for corporate aircraft, needs to purchase new broilers. The new broilers would replace broilers purchased 10 years ago for $105,000, which are being depreciated on a straight-line basis to a zero salvage value (15-year depreciable life). The old broilers can be sold today for $63,000. The new broilers will cost $202,000, installed (not counting funds already spent), and will be depreciated using straight-line depreciation over their 5-year life. They will be sold at their book value at the end of the 5th year. The firm expects to increase its revenues by $27,000 per year if the new broilers are purchased, but cash expenses will also increase by $3,000 per year. Annual interest expense will be $2,000, and net working capital will increase by $5,000. The new broilers will occupy space currently leased to another firm for $530 per month, and $5,000 has already been spent preparing the building for new broilers. The firm's tax rate is 40%. What is the initial cash flow for the project? Round your answers to the nearest dollar.
◦ -$160,200
◦ -$155,200
◦ -$148,200
◦ -$145,200
◦ -$141,200
Greater wings
A Patient Being Prepared for Electroconvulsive Therapy.
This painting depicts New Orleans in 1803, when the city was acquired—along with much of the modern
Biologically Prepared Fear
Typical Examination Room Equipment and Supplies
In a simulation, the path of a new aircraft after it has achieved weightlessness