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A company is considering a project that will cost $550,000 The initial cost will be depreciated to zero over the project's 2 year tax
A company is considering a project that will cost $550,000 The initial cost will be depreciated to zero over the project's 2 year tax life, but has an estimated market value of $20,000 at the end of the project. The project will generate annual cash revenues of $355,000 and have annual operating cost of $213,000. An initial working capital investment of $ 9,200 will be released at the end of the project. The company's required return is and it has a 30% tax rate. What is the project's initial cash flow (To)? What is the project's annual operating cash flow? What is the net cash flow in the final year of the project? What is the project's NPV? Round your final answers to the nearest dollar (e.g. $307). 12%
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