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help please :) Eisenhower Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. Note that this estimate is
help please :)
Eisenhower Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. Note that this estimate is for capital budgeting purposes, so financing costs are ignored. The financial staff has collected the following information on the project: Sales revenues = $13.10 million, operating costs (excluding depreciation) = $9.30 million, depreciation = $2.20 million, interest expense - $2.40 million, tax rate = 37.0%, and WACC - 16.1%. Estimate the project's cash flow for the first year based on this data, then estimate the cash flow for the same project with the tax rate : 30.00%, then calculate the change in the cash flow estimate as a result of changing the tax rate $0.084 million $0.112 million $0.140 million $0.168 million $0.196 million Step by Step Solution
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