Question
King Nothing is evaluating a new 6-year project that will have annual sales of $455,000 and costs of $311,000. The project will require fixed
King Nothing is evaluating a new 6-year project that will have annual sales of $455,000 and costs of $311,000. The project will require fixed assets of $555,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 35 percent. What is the operating cash flow for Year 3?
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
8th edition
77861620, 978-0077861629
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