A company is trying to estimate the first-year cash flow (at Year 1) for a proposed...
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A company is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project: Sales Optg costs (Excluding Depreciation) Depreciation Interest Expense $16.2 million $10.9 million $2.6 million $1.4 million The company has a 40% tax rate, and its WACC is 11%. What is the project's cash flow in year 1? Express your answer in millions and round to the nearest decimal place. (For example, if you answer is $13.26 million, enter 13.3) A company is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project: Sales Optg costs (Excluding Depreciation) Depreciation Interest Expense $16.2 million $10.9 million $2.6 million $1.4 million The company has a 40% tax rate, and its WACC is 11%. What is the project's cash flow in year 1? Express your answer in millions and round to the nearest decimal place. (For example, if you answer is $13.26 million, enter 13.3)
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To calculate the projects cash flow in year 1 we need to subtract operating costs excluding deprecia... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-1337395250
15th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
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