Question: A project will require $ 5 1 2 , 0 0 0 for fixed assets and $ 4 7 , 0 0 0 for net
A project will require $ for fixed assets and $ for net working capital. The fixed assets will be depreciated straightline to a zerobook value over the sixyear life of the project. No bonus depreciation will be taken. At the end of the project, the fixed assets will be worthless. The net working capital returns to its original level at the end of the project. The project is expected to generate annual sales of $ and costs of $ The tax rate is percent, and the required rate of return is percent. What is the amount of the annual operating cash flow?
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