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answer question 8 & show formulas used. use a table if possible please 08. The Mill Wheel is considering a project with a life of
answer question 8 & show formulas used. use a table if possible please
08. The Mill Wheel is considering a project with a life of 3 years that will require $289,400 for fixed assets, S36,700 for inventory, and $27,800 for accounts receivable. The short-term debt for this project is $16,500. The fixed assets will be depreciated straight-line to a zero book value over 5 years. At the end of the project in Year 3, the fixed assets can be sold for 20 percent of their original cost. In this project, all relevant items for the net working capital will incur in Year and return to zero at the end of the project in Year 3. The project is expected to generate annual sales of $275,000 and costs of $198,000. The tax rate is 21 percent and the required rate of return is 16 percent. What is the amount of the cash flow in the project's final year? [4 marks)
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