3 MST-Assignment MST-BE-MBA-2020 C Get Homework Help With Chegg X Truman Ltd. is considering an ex X + C 2 B https://docs.google.com/forms/d/e/1FAIpQLScFXnFun9qiLF8a8SEJqmKZcro 1TRWQmnCovovyRx-_qk7NHg/formResponse Q1. Truman Ltd. is considering an expansion. The necessary equipment can be purchased for $9 million. The useful life of equipment is 5 years and is fully depreciated for tax purpose (salvage value will be zero). Initially, there will be requirement of additional working capital of $2 million. The sales revenue for each year will be $10 million and operating cost (excluding depreciation) will be $7 million. In the 5th year, equipment can be sold for $1 million. The tax rate applicable to firm is 30%. a) Estimate the operating cash flow for firm for each year (1 mark) Your answer b) Estimate initial cash flow (1 mark) Your answer c) Estimate terminal cash flow (1 mark) Your answer ! Type here to search E (4) ENG 14:09 26-10-2020 =