Question
You are currently working for ALK Corp. and you have identified the following information for the first year of the roll-out of its new proposed
You are currently working for ALK Corp. and you have identified the following information for the first year of the roll-out of its new proposed project:
| Projected Revenue | $ 22 Million |
|---|---|
| Operating costs (does not include depreciation) | $11 Million |
| Depreciation | $6 Million |
| Interest Expense | $3 Million |
The firm faces a 25% tax rate. Assume that there are no changes in net operating working capital.
What is the projects operating cash flow for the first year ( at end of Year 1 ==> t = 1 ) ?
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Investment Science
Authors: David G. Luenberger
2nd Edition
0199740089, 978-0199740086
