ABC, Inc. is considering a new project. The financial projections are as follows: Sales Total Costs...
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ABC, Inc. is considering a new project. The financial projections are as follows: Sales Total Costs Depreciation Capital Expenditures Net Working Capital (Requirements/Levels) Year 0 80,000 4000 Year 1 48,000 14,000 20,000 5000 Year 2 48,000 14,000 20,000 2000 Year 3 48,000 14,000 20,000 The equipment will be sold at the end of Year 3 for 22,000. The relevant tax rate is 35%. a) Calculate the free cash flows for the project. 0 ABC, Inc. is considering a new project. The financial projections are as follows: Sales Total Costs Depreciation Capital Expenditures Net Working Capital (Requirements/Levels) Year 0 80,000 4000 Year 1 48,000 14,000 20,000 5000 Year 2 48,000 14,000 20,000 2000 Year 3 48,000 14,000 20,000 The equipment will be sold at the end of Year 3 for 22,000. The relevant tax rate is 35%. a) Calculate the free cash flows for the project. 0
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To calculate the free cash flows for the project we need to consider the following components 1 Calc... View the full answer
Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780135811603
5th Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Posted Date:
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