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The Best Manufacturing Company is considering a new 4-year project. Financial projections for the project are shown below. Assume all revenue and expenses, excluding depreciation,
The Best Manufacturing Company is considering a new 4-year project. Financial projections for the project are shown below. Assume all revenue and expenses, excluding depreciation, are on a cash basis. Best manufacturing Company Pro-forma project assumption (in US$) 0 1 Year Initial investment 2 3 4 -24,000 Revenue COGS Gross profit (GP) Cash expenses Depreciation EBIT axes Net income (NI) 12,000 2,400 9,600 1,200 6,000 2,400 480 1,920 12,000 2,400 9,600 1,200 6,000 2,400 480 1,920 12,000 2,400 9,600 1,200 6,000 2,400 480 1,920 12,000 2,400 9,600 1,200 6,000 2,400 480 1,920 What is the estimated operating cash flow (OCF) of the project for year 1
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