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Gramm Inc. is trying to estimate the first-year net operating cash flow (at year 1) for a proposed project. The financial staff has collected the
Gramm Inc. is trying to estimate the first-year net operating cash flow (at year 1) for a proposed project. The financial staff has collected the following information on the project: Sales revenues $20 million Operating costs (excluding depreciation) 13 million Depreciation 4 million Interest expense 4 million The company has a 21% tax rate, and its WACC is 10%. 21. What is the projects operating cash flow for the first year (t=1)?
Gramm Inc. is trying to estimate the first-year net operating cash flow (at year 1) for a proposed project. The financial staff has collected the following information on the project:
Sales revenues $20 million
Operating costs (excluding depreciation) 13 million
Depreciation 4 million
Interest expense 4 million
The company has a 21% tax rate, and its WACC is 10%.
21. What is the projects operating cash flow for the first year (t=1)?
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International Financial Reporting A Practical Guide
Authors: Alan Melville
6th edition
978-1292200743
