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A capital budgeting project will cause EBIT to increase by $44057 per year. The annual depreciation expense is $46836. The firm's tax rate is 22%.
A capital budgeting project will cause EBIT to increase by $44057 per year. The annual depreciation expense is $46836. The firm's tax rate is 22%. At the end, the equipment will be sold for its salvage value of $47621; its book value will be $28074 at that time. The initial increase in net working capital of $18661 will be recaptured at the end of the project's life. What is the cash flow in the last year of the project's life, to the nearest dollar? Include both the annual FCF and the terminal CF.
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