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4. Best Manufacturing Company is contemplating a new investment. The financial projections of the investment are tabulated below. The corporate tax rate is 34% and
4. Best Manufacturing Company is contemplating a new investment. The financial projections of the investment are tabulated below. The corporate tax rate is 34% and the company uses a straight-line depreciation method. Assume that all sales income is received in cash, all operating costs and income tax are paid in cash, and all cash flows occur at the end of the year. The entire net working capital (the accumulated working capital investment of all the years) is recovered at the end of the project:
a) What are the cash flows of the project?
Ao o Ao ! Ao 2 Ao 3 Ano 4 $16000 Inversin Ingresos por ventas Costos de operacin Depreciacin Gastos de capital de trabajo neto $8 500 1 900 4000 250 $9 000 2 000 4 000 300 $9 500 2200 4000 200 $7 000 1 700 4 000 ? 200Step by Step Solution
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