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Blaze Scooters is considering expanding into a new college town and has the following operating data: Initial Investment in scooters ( year 0 ) :
Blaze Scooters is considering expanding into a new college town and has the following operating data:
Initial Investment in scooters year : $
Cost of securing permits assume that permit cost is a taxdeductible expense in year : $
Anticipated Revenue: $ for years
Depreciation of scooters straight line down to over years.
Operating expenses not including Depreciation: $ per year.
Tax Rate:
Net Working Capital, consisting of cash, spare parts inventory, accounts receivable, and accounts payable: $ Blaze expects to be able to
recoup of Net Working if they shut down. Assume that investment in working capital occurs in year at the start of the project.
Scrap value of scooters at the end of years: $remember that any capital gains when selling are taxables
Assume that Blaze makes the necessary investments, operates for years, and then shuts down, selling the scooters for scrap and recouping Net
Working Capital. What are their expected aftertax cash flows for year rounded to the nearest cent
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