Question
You have been presented with estimated after-tax operating income (OI) and working capital (WC) requirements on a two-year project. t=1: OI=$100, WC=$20 and t=2: OI=$150,
You have been presented with estimated after-tax operating income ("OI") and working capital ("WC") requirements on a two-year project. t=1: OI=$100, WC=$20 and t=2: OI=$150, WC=$30.
The project requires an initial investment of $200, that depreciates straight line to a salvage value of $100. You can also assume that you will be able to recoup your entire working capital at the end of year two.
What are the after-tax cash flows in t=1, t=2, and t=3?
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Create Wealth How You Can Ditch The 9 5 Job With Multifamily Investing
Authors: Pam Scamardo
1st Edition
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