Question: A proposed three - year project will require $ 5 8 9 , 0 0 0 for fixed assets, $ 7 9 , 0 0
A proposed threeyear project will require $ for fixed assets, $ for inventory, and $ for accounts receivable. Accounts payable are expected to increase by $ The fixed assets will be depreciated straightline to a zero book value over five years. No bonus depreciation will be taken. At the end of the project, the fixed assets can be sold for $ The net working capital returns to its original level at the end of the project. The operating cash flow per year is $ The tax rate is percent and the discount rate is pericent. What is the total cash flow in the final year of the project?
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