Question: A proposed five-year project will require $500,000 for fixed assets and $30,000 for NWC. The fixed assets classified as five-year property for MACRS. At the

A proposed five-year project will require $500,000 for fixed assets and $30,000 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 $20,000. The net working capital returns to its original level at the end of the project. The operating cash flow per year is $60,000. The tax rate is 30 percent and the discount rate is 12 percent. What is the total cash flow in the final year of the project?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!