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Project A has forecasted an outlay of $ 2 0 0 , 0 0 0 for the equipment and an additional $ 4 0 ,

Project A has forecasted an outlay of $200,000 for the equipment and an additional $40,000 for installation. The firm will see an increase of $25,000 in inventories immediately to undertake this project, but they will also see an immediate increase in accounts payable of $5,000. There will be a return of the net working capital change at the end of the fourth year. Also, at the end of the fourth year the firm will sell the asset for a salvage value of $25,000. The firm has a variable cost of operations that is equivalent to 60% of sales, a sales price of $2.00 with no assumed annual inflation, and a tax rate of 26%. Depreciation will fall into the 3-year MACRS class carry out the depreciation proportion out to the fourth digit (e.g.,0.xxxx or xx.xx%). Unit sales are forecast to be 100,000; 110,000; 100,000; and 100,000 respectively for the first four years. What is the final free cash flow for the fourth year after adjusting for all relevant items?
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