Question: Purple Construction is evaluating a 6 - year project that would require an initial investment in equipment of $ 5 3 3 , 0 0
Purple Construction is evaluating a year project that would require an initial investment in equipment of $ The equipment would be depreciated to $ over years using straightline depreciation. In year the project is expected to have relevant revenue of $ and relevant variable costs of $ In addition, Purple Construction would have one source of freed costs associated with the project. Yesterday, Purple Construction signed a deal with Island Design to develop an advertising campaign for the project. The terms of the deal require Purple Construction to pay Island Design either $ in years if the project is pursued or $ in years if the project is not pursued. The tax rate is percent. What is the operating cash flow for year that Purple Construction should use in its NPV analysis of the project?
Input instructions: Round your answer to the nearest dollar.
dollars
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