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A. What is the project cash flow for year 1? B. What is the project cash flow for year 2? C. What is the NPV
A. What is the project cash flow for year 1?
B. What is the project cash flow for year 2?
C. What is the NPV of this project?
An analyst has created estimates for a new Putt Putt course near the local elementary school. The course will require an investment (building and equipment) at year 0 of $183,224.00 This amount can be depreciated over 5 years using the straight-line approach. The building can be sold for an NSV of $49,493.00 in year 5. The entrepreneur needs help estimating the cash flows for the business. 5 $69,696.00 $69,696.00 $69,696.00 $69,696.00 $69,696.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $36,644.80 $36,644.80 $36,644.80 $36,644.80 $36,644.80 $0 3 Sales Expenses Depreciation nvestment in NWC $1,126.00 $0 $0 $0 The investor wants an 10.00% return on the investment and the firm faces a 38.00% tax rate
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