Question
You are currently working for MAC 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 MAC 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 project's operating cash flow for the first year ( at end of Year 1 ==> t = 1 ) ?
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
12th edition
1285850033, 978-1305480698, 1305480694, 978-0357688236, 978-1285850030
