A four-year project has cash flows before taxes and depreciation of $12,000 per year. The project requires
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A four-year project has cash flows before taxes and depreciation of $12,000 per year. The project requires the purchase of a $50,000 asset that will be depreciated over five year’s straight line. At the end of the fourth year the asset will be sold for $18,000. The firm’s marginal tax rate is 35%. Calculate the cash flows associated with the project.
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