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A COMPANY IS CURRENTLY EXECUTING A PROJECT THAT HAS AN ANNUAL NET INCOME AFTER TAX OF 1.5 MILLION. THE ANNUAL DEPRECIATION ON THE PROJECT'S ASSET
A COMPANY IS CURRENTLY EXECUTING A PROJECT THAT HAS AN ANNUAL NET INCOME AFTER TAX OF 1.5 MILLION. THE ANNUAL DEPRECIATION ON THE PROJECT'S ASSET IS 250000 AND THE INTEREST PAYMENT ON ITS DEBT IS 50000. THE PROJECT IS IN ITS LAST YEAR. THE COMPANY INTENDS TO SELL OFF ITS DEPLETED ASSETS FOR 300000 AND RETURN ITS WORKING CAPITAL FOR 150000. THE COMPANY MARGINAL TAX RATE IS 30%. WHAT IS THE FREE CASH FLOW OF THE PROJECT IN THE FINAL YEAR?
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