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You are evaluating a project for The Farstroke golf club, guaranteed to correct that nasty slice. You estimate the sales price of The Farstroke to
You are evaluating a project for The Farstroke golf club, guaranteed to
correct that nasty slice. You estimate the sales price of The Farstroke to
be $ per unit and sales volume to be units in year ; units
in year ; and units in year The project has a year life. Variable
costs amount to $ per unit and fixed costs are $ per year.
The project requires an initial investment of $ in assets, which
will be depreciated straightline to zero over the threeyear project life.
The actual market value of these assets at the end of year is expected
to be $ NWC requirements at the beginning of each year will be
approximately percent of the projected sales during the coming year.
The tax rate is percent and the required return on the project is
percent.
What is the operating cash flow for the project in year Enter your
answer as a whole number.
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