Question
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
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started