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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.
Operating cash flow
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