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A 5-year project has the following projected cash flows: Capital expenditure at t=0 of $1,650,000 Initial net working capital investment of $195,000 at t=0, to
A 5-year project has the following projected cash flows: Capital expenditure at t=0 of $1,650,000 Initial net working capital investment of $195,000 at t=0, to be returned at t=5. Capital expenditure will be depreciated to $0 at the end of 5 years, but expected to have salvage value of $175,000 at that time. Incremental free cash flows, aka Net Operating Cash Flows, of $460,000 each year. If the firm's tax rate is 21%, and the
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