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Consider the following projected accounting information regarding a proposed new project: Year 0 Year 1 Year 2 Year 3 Equipment purchase $60,000 $0 $0 $0
Consider the following projected accounting information regarding a proposed new project: Year 0 Year 1 Year 2 Year 3 Equipment purchase $60,000 $0 $0 $0 Working Capital (account level) 10,000 12,000 9,000 0 Revenues 75,000 100,000 110,000 Expenses 22,500 30,000 33,000 Depreciation 15,000 15,000 15,000 Profit Before Taxes 37,500 55,000 62,000 Taxes (@ 35%) 7,875 11,550 13,020 Net profit 29,625 43,450 48,980 Calculate the Year 0 cash flow from Property, Plant, and Equipment
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