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Perkins, Inc., is considering an investment of $ 3 7 7 , 0 0 0 in an asset with an economic life of 5 years.
Perkins, Inc., is considering an investment of $ in an asset with an economic life of years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $ and $ respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of percent. The company will use the straightline method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $ in nominal terms at that time. The onetime net working capital investment of $ is required immediately and will be recovered at the end of the project. The tax rate is percent.
What is the project's total nominal cash flow from assets for each year? A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole dollar, egPerkins Inc., is considering an investment of $ in an asset with an economic life of years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be $ and $ respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of percent. The company will use the straightline method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be $ in nominal terms at that time. The onetime net working capital investment of $ is required immediately and will be recovered at the end of the project. The tax rate is percent.
What is the project's total nominal cash flow from assets for each year? A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole dollar, eg
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