A new project is expected to generate $1,500,000 in revenues, $550,000 in cash operating expenses, and...

 

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A new project is expected to generate $1,500,000 in revenues, $550,000 in cash operating expenses, and depreciation expense of $300,000 in each year of its 10-year life. The corporation's tax rate is 21%. The project will require an increase in net working capital of $65,000 in the beginning and a decrease in net working capital of $65,000 in year ten. What is the free cash flow from the project in year one? A new project is expected to generate $1,500,000 in revenues, $550,000 in cash operating expenses, and depreciation expense of $300,000 in each year of its 10-year life. The corporation's tax rate is 21%. The project will require an increase in net working capital of $65,000 in the beginning and a decrease in net working capital of $65,000 in year ten. What is the free cash flow from the project in year one?

Answer rating: 100% (QA)

To calculate the free cash flow from the project in year one we need to subtract the ... View the full answer