Question
A 9-year project is expected to provide annual sales of $157,000 with costs of $84,000. The equipment necessary for the project will cost $370,000 and
A 9-year project is expected to provide annual sales of $157,000 with costs of $84,000. The equipment necessary for the project will cost $370,000 and will be depreciated on a straight-line method over the life of the project. You feel that both sales and costs are accurate to +/-10 percent. The tax rate is 40 percent. What is the annual operating cash flow for the worst-case scenario?
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
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