Hermon now wants to take into account its ability to abandon the project at the end of year 2 if the project ends up generating the worst-case scenario cash flows. If it decides to abandon the project at the end of year 2, the company will receive a one-time net cash inflow of $4,750 (at the end of year 2). The $4,750 the company receives at the end of year 2 is the difference between the cash the company receives from selling off the project’s assets and the company’s -$3,000 cash outflow from operations. Additionally, if it abandons the project, the company will have no cash flows in years 3 and 4 of the project.
https://essaywritinggeek.com/wp-content/uploads/2021/09/lologo-300x75.png 0 0 admin https://essaywritinggeek.com/wp-content/uploads/2021/09/lologo-300x75.png admin2021-06-02 10:20:302021-06-02 10:20:30Hermon co. is considering a four-year project that will require an