Question
Ceteris paribus, assume the following: Year Zero: Capital investment= $ 6 million and increase0f $500,000 in needed inventory; Year1-4: OCF= $ 4,500,000 PER YEAR; Year
Ceteris paribus, assume the following: Year Zero: Capital investment= $ 6 million and increase0f $500,000 in needed inventory; Year1-4: OCF= $ 4,500,000 PER YEAR; Year 4: Recovery of earlier increase in working capital and in addition, cash flow from salvage of $500,000. What is the incremental cash flow for year 4?
A) $6.5 MILLION b)$6 MILLION C) $4.5 MILLION D) $5.5 MILLION
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International financial management
Authors: Jeff Madura
13th edition
978-1337099738, 1337099732, 9781337515894, 1337515892, 978-1337587211
