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[2] Cash flow determination in Year 5 You are provided with the following forecasts about a nine-year investment project in year 5 Depreciation is straight-line

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[2] Cash flow determination in Year 5 You are provided with the following forecasts about a nine-year investment project in year 5 Depreciation is straight-line over nine years. Calculate cash-flow for year 5. Initial investment Years of the project Units sold in (year 5) Price per unit (year 5) Units costs (year 5) Other costs (rent in year 5) Tax rate 2,700,000 750 4,000 1,500 500,000 40% Earnings Sales Cost of goods sold Other costs Depreciation charges EBIT Taxes EBIT -taxes [2.5 points] [2.5 points] 500,000 [2.5 points] [2.5 points] Cash-flow (without AWC) [10 points] Accounts receivable Year 5 Accounts receivable Year 4 Inventory Year 5 Inventory Year 4 Accounts payable Year5 Accounts payable Year4 194,000 88,000 138,000 65,000 60,000 31,000 Change in working capital [10 points] Cash-flow (with AWC) [10 points]

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