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Operating and terminal CFs . If using the 1 5 th edition of the text ( or an earlier edition ) , refer to the
Operating and terminal CFs
If using the th edition of the text or an earlier edition refer to the Web Tax Appendix to correctly answer this question. Your company, Pescow Industries, is considering a new project whose data are shown below. The required equipment will be used for years during the projects life. The equipment qualifies for bonus depreciation, so it will be fully depreciated at the time of purchase. It will have zero market value at the end of Year when the project would be terminated. Also, some new net operating working capital would be required to do this project, but it would be recovered at the end of the projects life. Revenues and operating costs are expected to be constant over the projects year expected operating life. What is the projects cash flow in Year including terminal cash flows?
Purchase price of equipment$
Required new NOWC
Annual sales revenues
Operating costs
Tax rate
a$
b$
c$
d$
e$
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