Answered step by step
Verified Expert Solution
Question
1 Approved Answer
a project has an annual operating cash flow of $43 700. Initially this 4 year project required 3,800 in net working capital which is recoverable
a project has an annual operating cash flow of $43 700. Initially this 4 year project required 3,800 in net working capital which is recoverable when the project ends. The firm also spent 21,500 on equipment to start the project. This equipment will have a book value of 4,300 at the end of year 4. What is the cash flow for year 4 of the project if the equipment can be sold for 5,4000 and the tax rate is 34 percent?
A. 51,724
B. 52,038
C. 52,596
D. 52,900
E. 43,100
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started