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A project that is expected to last six years will generate a profit and cash flow contribution before taxes and

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A project that is expected to last six years will generate a profit and cash flow contribution before taxes and depreciation of $23,000 per year. It requires the initial purchase of equipment costing $60,000, which will be depreciated over four years. The relevant tax rate is 25%. Calculate the project’s cash flows. Round all figures within your computations to the nearest thousand dollars.

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The initial outlay is just the cost of the equipment So C 0 60 000 T…View the full answer


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Related Book For  answer-question
Practical financial management

Practical financial management

ISBN: 978-0324422634

5th Edition

Authors: William r. Lasher

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Question Posted: September 13, 2012 03:46:26
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