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You are working on a bid for a contract. Thus far, you have determined that you will need $156,000 for fixed assets and another $32,000
You are working on a bid for a contract. Thus far, you have determined that you will need $156,000 for fixed assets and another $32,000 for net working capital at Time 0. You have also determined that you can recover $68,400 aftertax for the combined fixed assets and net working capital at the end of the 4-year project. What operating cash flow will be required each year for the project to return 16 percent in nominal terms?
answer: $53,686.06
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