Question: A capital budgeting project will cause EBIT to increase by $43244 per year. The annual depreciation expense is $43832. The firm's tax rate is 22%.

A capital budgeting project will cause EBIT to increase by $43244 per year. The annual depreciation expense is $43832. The firm's tax rate is 22%. At the end, the equipment will be sold for its salvage value of $51976; its book value will be $30809 at that time. The initial increase in net working capital of $19842 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, in $? Include both the annual FCF and the terminal CF. Blank 1. Calculate the answer by read surrounding text.

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