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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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