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Ceteris paribus, assume the following: Year Zero: Capital Investment = $5 million and increase of $250,000 in needed inventory; Years 1-4: OCF = $4
Ceteris paribus, assume the following: Year Zero: Capital Investment = $5 million and increase of $250,000 in needed inventory; Years 1-4: OCF = $4 million per year; Year 4: Recovery of one-half the earlier increase in working capital plus cash flow from salvage of $2 million. What is the incremental cash flow for this project in year 4? A. $4.575 million B. $2.525 million C. $6.000 million OD. $6.125 million COOR
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