Question
Year 0 1 2 3 4 5 6 OCF 126,050.00 155,070.00 152,228.80 158,606.10 177,963.85 192,256.14 Net Capital Spending (650,000.00) Changes in NWC (25,000.00) (6,000.00) (6,000.00)
| Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
| OCF |
| 126,050.00 | 155,070.00 | 152,228.80 | 158,606.10 | 177,963.85 | 192,256.14 |
| Net Capital Spending | (650,000.00) |
|
|
|
|
|
|
| Changes in NWC | (25,000.00) | (6,000.00) | (6,000.00) | (6,000.00) | (6,000.00) | (6,000.00) | 55,000.00 |
| CFFA | 675,000.00 | 132,050.00 | 161,070.00 | 158,228.80 | 164,606.10 | 183,963.85 | 137,256.14 |
| Salvage Value | $ 1,000,000.00 |
| After Tax Salvage | $ 790,000.00 |
Analyze, summarize and give your option in one paragraph.
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Options Futures And Other Derivatives
Authors: John C. Hull
7th Edition
0136015867, 9780136015864
