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Wenling, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $150,000. The fixed asset will be depreciated straight-line
Wenling, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $150,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will have a market value of $5,000 at the end of the project. Also, the project is estimated to generate $145,000 in annual sales, with costs of $55,200. Assume that the tax rate is 35 percent. Lastly, the project requires an initial investment in net working capital of $4,000
What is the OCF for this project? Numeric Answer: What is the after-tax salvage value for selling this asset? Numeric Answer: What is the project's Year O net cash flow? Numeric Answer: What is the project's Year 1 net cash flow? Numeric Answer: What is the project's Year 3 net cash flow? NumericStep by Step Solution
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