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All things equal: Year 0: Capital investment= $6,000,000 and increase of $500,000 in inventory Years 1-4: OCF = $4,500,000/year Year 4:: Recovery of capital and
All things equal:
Year 0: Capital investment= $6,000,000 and increase of $500,000 in inventory
Years 1-4: OCF = $4,500,000/year
Year 4:: Recovery of capital and in addition of cash flow from salvage of $500,000
What is the incremental cash flow for year 4?
6 million
6.5 million
4.5 Million
5.5 million
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