Question: 3. a capital budgeting project will cause ebit to increase by $41,425 per year. The annual depreciation expense is $46,701. the firms tax rate is
3. a capital budgeting project will cause ebit to increase by $41,425 per year. The annual depreciation expense is $46,701. the firms tax rate is 21%. At the end, the equipment will be sold for its salvage value of $41,985. its book value will be $35,632 at that time. the initial increase in net working capital of $14,320 will be recaptured at the end of the projects life. what is the cash flow in the last year of the projects life? include both the annual fcf and the terminal cf
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