A company has a proposed project that will generate sales of 3,000 units annually at a selling price of $30.00 each. The fixed costs are $20,000 and the variable costs per unit are $15. The project requires $72,000 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the three-year life of the project. The after-tax salvage value of the fixed assets is O and the tax rate is 21 percent. The initial investment in net working capital is $20,000. 

What is the cash flow from assets at the end of Year 3 of the project?

Answer rating: 100% (QA)

1 Operating Cash Flows The operating cash flows can be calculated as follows ... View the full answer