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A proposed five-year project will require $500,000 for fixed assets and $30,000 for NWC. The fixed assets classified as five-year property for MACRS. At the
A proposed five-year project will require $500,000 for fixed assets and $30,000 for NWC. The fixed assets classified as five-year property for MACRS. At the end of the project, the fixed assets can be sold for $20,000. The net working capital returns to its original level at the end of the project. The operating cash flow per year is $60,000. The tax rate is 30 percent and the discount rate is 12 percent. What is the total cash flow in the final year of the project?
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