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Gustav has decided to introduce a new line of cat carriers. He will need a new equipment that costs $15000000 and can be depreciated on
Gustav has decided to introduce a new line of cat carriers. He will need a new equipment that costs $15000000 and can be depreciated on a MACRS three-year basis. After three years, he plans to sell the equipment for $5,000,000. The new carriers will also require an increase in NWC of $2900000 that will be recuperated at the end of the project. Gustav's company has an effective tax rate of 40%. What is the estimated FCF in year 0?
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