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PERIOD EBIT 0 1 $35,000 2 $45,000 3 $60,000 4 $75,000 The above table illustrates earnings before interest and taxes for a capital investment
PERIOD EBIT 0 1 $35,000 2 $45,000 3 $60,000 4 $75,000 The above table illustrates earnings before interest and taxes for a capital investment project. Additional information for this project: initial cost of the investment = $250,000 change in net working capital = $10,000 (and 50% of this is recoverable at end of the project) tax rate = 31.0% WACC = 15.0% depreciation = straight line over five years projected cash flow from salvage = $136,250 What is net incremental cash flow for Year 3? Enter your response as a regular dollar value, rounded to the nearest dollar. Of course, enter any negative number with a minus sign. Do not enter dollar signs, percent signs, or commas.
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