Question: A proposed three year project will require $500,000 for fixed assets and $20,000 for NWC. The fixed assets classified as three your property for MACRS

 A proposed three year project will require $500,000 for fixed assets

A proposed three year project will require $500,000 for fixed assets and $20,000 for NWC. The fixed assets classified as three your property for MACRS At the end of the project the food can be sold for $30,000. The net working capital returns to its original level at the end of the project. The operating cash flow per year $65.000 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? Year 1 2 3 4 5 Depreciation Rate 0.20 0.32 0.19 0.12 0.11 0.06

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