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Q# 2 . pts . ) The Kamran and Kamran, LLC is examining a project that requires an initial investment of $ 2 , 0

Q#2. pts.) The Kamran and Kamran, LLC is examining a project that requires an initial
investment of $2,000,000. The firm would have to increase its NWC by $30,000 at the beginning of the
project followed by additional $7,000 in year 2 and 4. The NWC will reduce by $5,000 at the end of year
The project will qualify for five-year straight-line depreciation method to zero book value. The
project has a useful life of six years. The firm expects to sell the project for $250,000 at the end of six
year. The projected cash flow before depreciation and taxes during the six-year life is $320,000,
$450,000,$590,000,$600,000,$380,000 and $400,000 respectively. The firm is in a 20% marginal tax
bracket. Based on the above information, compute the project after tax free cash flow over the life of
the investment for Kamran and Kamran
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