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Salvage value of $6 will occur at the end of the project. $70 will be spent on equipment and $10 will be spent on advertising
Salvage value of $6 will occur at the end of the project. $70 will be spent on equipment and $10 will be spent on advertising now, and $20 will be spent on advertising in the first year. Operating Cash Flow and change in Working Capital for the project have been provided in Figure A fill in the table and find the free cash flow to the firm (FCFF) Cash Flows ($) o 1 2 3 4 5 6 Equipment Advertising Operating CF Investment CF Change in WC Operating CF Change in WC Salvage Value FCFCC Figure A Operating Cash Flow ($) 1 2 3 -9.645 26.265 26.265 -14.800 -36.300 0.000 4 5 6 26.265 0.000 26.265 0.000 0.000 51.000
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