Question
A 4-year project has an annual operating cash flow of $58,500. At the beginning of the project, $4,950 in net working capital was required,
A 4-year project has an annual operating cash flow of $58,500. At the beginning of the project, $4,950 in net working capital was required, which will be recovered at the end of the project. The firm also spent $23,800 on equipment to start the project. This equipment will have a book value of $5,220 at the end of the project, but can be sold for $6,090. The tax rate is 21 percent. What is the Year 4 cash flow?
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
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