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Kelly Corporation is considering an investment proposal that requires an initial investment of $ 1 5 0 , 0 0 0 in equipment. Fully depreciated
Kelly Corporation is considering an investment proposal that requires an initial investment of $ in equipment. Fully depreciated existing equipment may be disposed of for $ pretax. The proposed project will have a fiveyear life, and is expected to produce additional revenue of $ per year. Expenses other than depreciation will be $ per year. The newequipment will be depreciated to zero over the fiveyear useful life, but it is expected to actually be sold for $ Kelly has a tax rate.a What is the net initial outlay for the proposed project?b What is the operating cash flow for years c What is the total cash flow at the end of year five operating cash flow for year plus terminal cash flow
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