Question: A proposed five-year project will require $400,000 for fixed assets and $20,000 for NWC. The fixed assets classified as five-year property for MACRS. At the
A proposed five-year project will require $400,000 for fixed assets and $20,000 for NWC. The fixed assets classified as five-year property for MACRS. At the end of the project, the fixed assets can be sold for $30,000. The networking capital returns to its original level at the end of the project. The operating cash flow per year in $62,000. The tax rate is 40 percent and the discount rate is 12 percent. What is the total cash flow in the final year of the project? Year 1 2 3 4 5 6 Depreciation Rate 0.20 0.32 0.19 0.12 0.11 0.06
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