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Consider the following proposed project for Axdom Industries. Cost of new equipment: $170,000 Shipping Installation: $10.000 Change in Net Operating Working Capital $40.000 New sales

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Consider the following proposed project for Axdom Industries. Cost of new equipment: $170,000 Shipping Installation: $10.000 Change in Net Operating Working Capital $40.000 New sales per year: $140,000 New operating costs per year: $60.000 Economic He: 4 year's Depreciablete MACRS 3-year class (33%. 45% 15%.7 Salvage value: $18.000 Tax Rate: 25% WACC 8% What is the operating cash flow for year 3, or FCF3? $66,750 $140,000 $73,500 $53.000 Previous 23

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