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a company is considering a new six-year expansion project that requires an initial fixed asset investment of $5.876 Million. the fixed asset will be depreciated
a company is considering a new six-year expansion project that requires an initial fixed asset investment of $5.876 Million. the fixed asset will be depreciated straight-line to zero over it's six year tax life, after which time it will be worthless. The project is estimated to generate $5,328,000 in annual sales, with costs of $2,131,200. The tax rate is 32 percent. How do I calculate the annual the annual operating cash flow for the project?
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