Question

A company recently undertook a project costing $500,000. The company expect net Revenue of 300,000 with an operating expenses of 200,000 year. the company faces a tax rate of 30%. If the project last for 5 years, determine the companys annual net cash flow.

Clarify each item how it has been calculated (Initial cost, Revenue, Operating expenses, etc.).

period	0	1	2	3	4	5
Initial cost
Revenue
Operating expenses
Depreciation
Profit before tax
Tax (30%)
Profit after tax
Add deprecation
Net cash flow