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Hello Shelie, Here is my next question for assistance. Thank you. Gary HW #5 Page 1 01 EMBA FIN526 spring 2017: F|N526 Gary Miller HW
Hello Shelie,
Here is my next question for assistance.
Thank you.
Gary
HW #5 Page 1 01 EMBA FIN526 spring 2017: F|N526 Gary Miller HW #5 instructions i help 5 value . 4.00 points Etonic Inc. is conddering an investment of $379,000 in an asset with an economic life of 5 years. The rm estimates that the nominal annual cash revenues and expenus at the end of the rst year will be $259,000 and $34,000. respectively. Both revenues and expenses will grow thereafter at the annual ination rate of 4 percent. The company will use the straightline method to depreciate its asset to zero over ve years. The sewage value of the asset is estimated to be $59,000 in nominal terms at that time. The one-time net working capital investment of $17,001 is required immediately and will be recovered at the end of the proied. The corporate tax rate is 35 percent. What is the project's total nominal cash flow from assets for each year? (A negative answers should be Indicated bya minus sign. Do not round Intermediate calculations and round your answers to the nearest whole number, e.g.. 32.) Year 0 S r__- Year 1 5 [ Year 2 5 ' Year 3 s I.\" Year 4 5 Year 5 S _ References eBook 8- Resources Worksheet Difculty: 2 Intermediate Section: 6.5 ination and Capital Budgeting Check my workStep by Step Solution
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