A company is looking at new equipment with an installed cost of $415,329. This cost will be
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A company is looking at new equipment with an installed cost of $415,329. This cost will be depreciated straight-line to zero over the project's 5-year life, at the end of which the equipment can be scrapped for $22,287. The operating cash flows (OCF) associated with this project are $120,000 per year. The equipment requires an initial investment in net working capital of $26,206. The project will maintain the same level of net working capital each year and will recover the networking capital at the end of the project.The tax rate is 21 percent.
What are the projected total cash flows for year 0 of this project?
Related Book For
Essentials of Corporate Finance
ISBN: 978-1260013955
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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