A firm is analyzing a project in which a fixed cost $750 is classified as a five your asset under MACRS. The Asset is to be used in a five-year project at the end of the project as it could be sold for $135. The project is expected to generate annual sales of 700 and annual costs of good sold of $320. The project also requires an investment in net working capital of $70 that will be recovered at the end of the project the tax rate is 20% find the cash flow from asset for year five.

a firm*

1 A fom is analyzing project in which are asset that costs $750 is lossified as a five-year asset under MACRS. These is to be used in a ve year project the end of the project the asset could be sold for $135. The project is expected to generate annual sales of $700 and cost of goods sold af 5320 The project also requires an investment in networking capital of $70 that will be recovered at the end of the project. The taste 20% ad mestom assets for year five 5300 $135 $256 $275 5368 S50B