Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can i gwt some help on this problem A proposed three-year project will require $627,000 for fixed assets, $196,000 for inventory, and $34,000 for accounts

can i gwt some help on this problem
image text in transcribed
A proposed three-year project will require $627,000 for fixed assets, $196,000 for inventory, and $34,000 for accounts receivable. Accounts payable are expected to increase by $156,000. The fixed assets will be depreciated straight-line to a zero book value over five years. At the end of the project, the fixed assets can be sold for $255,000. The net working capital returns to its original level at the end of the project. The operating cash flow per year is $62,000. The tax rate is 35 percent and the discount rate is 12 percent. What is the total cash flow in the final year of the project? $392,584 $321,530 $330.030 $365,411 $389,530

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Describe the five elements of the listening process.

Answered: 1 week ago