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You are evaluating a project for your company Me&CO. You estimate the sales to be $ 90,000 in year 1; $ 100,000 in year 2;
You are evaluating a project for your company Me&CO. You estimate the sales to be $ 90,000 in year 1; $ 100,000 in year 2; and $ 150,000 in year 3. The project has a three-year life. Fixed costs amount to $55,000 per year. The project requires an initial investment of $50,000 in assets that will be depreciated straight-line to zero over the three-year project life. The tax rate is 34 percent. What is the Operating Cash Flow for the project in year 2?
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