Question
Use the following information for Questions 15-19. Mirza inc. is going to invest in a project. The first cost they incur is a 4.3M investment
Use the following information for Questions 15-19. Mirza inc. is going to invest in a project. The first cost they incur is a 4.3M investment that will depreciate straight line to zero over the 4 years of the projects life. Sales generated will equal 7.6M and costs of 4.1M (excluding depreciation). In addition, the project requires an initial investment in new working capital of $0.4M, which will be recovered at the end of the project. After the project their investment will have a market value of $0.189M. Assume a 25% tax rate. What is the depreciation expense per year? (Round to THREE decimal places, put answer in millions but do not include the units) What is the Operating Cash Flow of the project? (Round to THREE decimal places, put answer in millions but do not include the units.) What is the Net Working Capital recovered at the end of the project? (Round to ONE decimal place.) What is the After-tax salvage value at the end of the project? (Round to THREE decimal places, put answer in millions but do not include the units) What is the net cash flow of the project? (Use the rounded answers from above. Round final answer to THREE decimal places and enter in millions, but do not include the units)
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