This company is calculating the termination cash flow of one of its proposed projects. The firm will
Fantastic news! We've Found the answer you've been seeking!
Question:
This company is calculating the termination cash flow of one of its proposed projects. The firm will invest $10,000 for inventories of which $4,000 will be financed with Accounts Payable, at the beginning of the project. When the firm sells the used equipment at the end of its useful life, they estimate that they can get $54,000. Book value of the equipment then will be $9,000. Tax rate is 20%.What is the equipment's after-tax Termination Cash Flow for use in capital budgeting analysis?
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date: