Recently, you calculated the cashflows for the Highfeed Dryer project to determine the feasibility of a new feed mix process. Since that time you have now discovered that the calculation of the standard cash flow for Year 1 of $55,000 did not consider the following anticipated changes: account receivable are expected to increase $7,000; cash will rise by $2,000; inventory will increase by $4,000; and account payable are expected to increase $5,000. Determine the new estimated cashflow for Year 1.

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The Answer of Recently, you calculated the cashflows for the Highfeed Dryer project to determine the feasibility of a new feed mix process. Since that time you have now discovered that the calculation of the standard cash flow for Year 1 of $55,000 did not consider the following anticipated changes: account receivable are expected to increase $7,000; cash will rise by $2,000; inventory will increase by $4,000; and account payable are expected to increase $5,000. Determine the new estimated cashflow for Year 1.

Recently, You Calculated the Cashflows for the Highfeed Dryer Project