Question: 1 A capital budgeting project will cause EBIT to increase by $40545 per year. The annual depreciation expense is $41650. The firm's tax rate is
A capital budgeting project will cause EBIT to increase by $40545 per year. The annual depreciation expense is $41650. The firm's tax rate is 23%. At the end, the equipment will be sold for its salvage value of 550848 ; its book value will be 530907 at that time. The initial increase in net working capital of 518702 will be recaptured at the end of the project's life. What is the cash flow in the last year of the project's life, to the nearest dollar? include both the annual FCF and the terminatich
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