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A 4-year project has an annual operating cash flow of $54,500. At the beginning of the project, $4,550 in net working capital was required, which
A 4-year project has an annual operating cash flow of $54,500. At the beginning of the project, $4,550 in net working capital was required, which will be recovered at the end of the project. The firm also spent $23,000 on equipment to start the project. This equipment will have a book value of $4,900 at the end of the project, but can be sold for $5,850. The tax rate is 21 percent. What is the Year 4 cash flow? Show me your work.
A. $64,701
B. $65,223
C. $62,911
D. $20,409
E. $55,477
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