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What is the projects cash flow for year 1? What is the projects cash flow for year 2? A firm is considering a project with
What is the projects cash flow for year 1?
What is the projects cash flow for year 2?
A firm is considering a project with the following information: Project will require purchase of a machine for $115,921.00 that is MACRS depreciable over a five-year schedule. (no depreciation until end of year 1). Project will require immediate non-depreciable expenses of $29,189.00 TODAY (year 0) Project will have the following projected balance sheet values of NWC: YEAR 0 2 NWC Level $4,000 10.00% of sales 8.00% of sales . Sales for the project will be $55,092.00 per year, with all other expenses excluding depreciation at 40.00% of sales. . The tax rate for the firm is 37.00%, while the cost of capital is 15.00% assume project goes beyond two years What is the project cash flow for year 0
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