You are currently working for MAC Corp. and you have identified the following information for the first
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Question:
You are currently working for MAC Corp. and you have identified the following information for the first year of the roll-out of its new proposed project:
Projected Revenue | $ 22 Million |
---|---|
Operating costs (does not include depreciation) | $11 Million |
Depreciation | $6 Million |
Interest Expense | $3 Million |
The firm faces a 25% tax rate. Assume that there are no changes in net operating working capital.
What is the project's operating cash flow for the first year ( at end of Year 1 ==> t = 1 ) ?
Related Book For
Intermediate Financial Management
ISBN: 978-1285850030
12th edition
Authors: Eugene F. Brigham, Phillip R. Daves
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