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A manufacturing plant with a FCI of 180 million has a plant life of 8 years. It generates an annual gross profit of 60 million.
A manufacturing plant with a FCI of 180 million has a plant life of 8 years. It generates an annual gross profit of 60 million. Calculate the straight line depreciation charge, taxes paid and after tax cash flow for the first 8 years of plant operation. Assume the 8 plant is built in Year 0 and begins operation in Year 1. Assume the rate of income tax is 20% and taxes must be paid based on the previous years income. What is the cumulative NCF in Year 8? O A. 65 million O B. 275 million O C. -170 million O D. 247.5 million
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