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6. I will have this upvoted! thank you The Martin approved a 4-year project that requires an initial investment of $72 million for the equipment
6. I will have this upvoted! thank you
The Martin approved a 4-year project that requires an initial investment of $72 million for the equipment and working capital of $6 million. The marginal tax rate for Martin is 10%. The project will generate the following figures for each year during the life of the project: sales of $60 million, Operating Expenses of $4 million and Depreciation and Amordization charges of $18 million. The firm uses straight-line depreciation and assumes that the equipment will fully depreciate at the end of the project. If the market value of the equipment is $4 million at the end of the project, what is the Free Cash Flow of the project in year 4? O $59.33 million $64.27 million 556.86 million $61.80 million $34.20 millionStep by Step Solution
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