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Clients pay your company 20% in cash at the time of sale, 70% cash one year later, and the final 10% one year after that.
Clients pay your company 20% in cash at the time of sale, 70% cash one year later, and the final 10% one year after that. You are considering project X, which would increase company revenue by 100 at t = 1 only. Revenue for other years would be unaffected and there is no impact on expenses. The tax rate is 30%. What is the impact of the above on the company's net cash flow at t = 1? No change Net increase of 100 Net decrease of 100 Net increase of 70 Net decrease of 70 Net increase of 14 Net decrease of 14 None of the above
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