Brady, a U.S.-based firm, is considering a three-year project in China.

The following information is available about the project:

• The project is for 3
  • Initial capital expenditure is CNY180,000.
  • You will depreciate this cost over 3 years using SL to zero.
  • Pre-tax salvage value at year 3 is expected to be CNY60,000.
• Brady expects to sell 40,000 units/year at a price of CNY4/unit, variable cost = CNY1/unit.
  • Fixed costs are estimated to be CNY5,000/year.
  • Net working capital is estimated to be 25% of the next years sales.
• The project WACC_CNY is 12%. The tax rate in China is 15%.
• What is the total cash flow in year 3?