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Problem 6 - 2 1 Calculating Nominal Cash Flow Shado, Incorporated, is considering an investment of $ 4 5 5 , 0 0 0 in
Problem Calculating Nominal Cash Flow
Shado, Incorporated, is considering an investment of $ in an asset with an economic life of five 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 corporate tax rate is percent. What is the project's total nominal cash flow from assets for each year? A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, eg
tableYear Year Year Year Year Year
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