Question
1-Super Awesome Company is considering a new project. The required new equipment will cost $70,146 and has a 3-year MACRS life, with the allowed depreciation
1-Super Awesome Company is considering a new project. The required new equipment will cost $70,146 and has a 3-year MACRS life, with the allowed depreciation rates of 33.33%, 44.45%, 14.81%, and 7.41% for Years 1 through 4. The new project is expected to generate constant annual sales of $88,995 and operating costs (excluding depreciation) equal to 40% of annual sales. It also expects an increase in net operating working capital equal to 14.6% of annual sales for each of the next three years. The company's tax rate is 35%.
What is the net cash flow in YEAR 1 of this new project? Do not discount the cash flows to year 0. Round your answer to the nearest dollar.
=________?
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