A company considers a project that will generate cash sales of P50,000 per year. Fixed costs will
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Question:
A company considers a project that will generate cash sales of P50,000 per year. Fixed costs will be P10,000 per year, variable costs will be 40% of sales, and depreciation of the equipment in the project will be P5,000 per year. Taxes are 40%.
Required:
The expected annual cash flow to the company resulting from the project.
Related Book For
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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