Question: A capital project is expected to last three years with annual revenue of $100,000, annual costs of $50,000, annual depreciation expense of $20,000, and an
A capital project is expected to last three years with annual revenue of $100,000, annual costs of $50,000, annual depreciation expense of $20,000, and an annual tax rate of 40%. The project will require net working capital of $30,000 and capital spending of $50,000. What is the year three Free Cash Flow?
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