ABC, Inc is planning the purchase of a new equipment which will cost $39,945. The project is expected to last for 8 years. The equipment will have a book value of $3,704 at the end of Year 8. The increase in net working capital is expected to be $3,059, all of which will be recouped at the end of the project. The project is expected to have annual operating cash flows of $18,125. 

What is the Total Cash Flow in Year 8 of the project if the equipment can be sold for $4,975 and the tax rate is 25%?

Answer rating: 100% (QA)

Heres how to calculate the Total Cash Flow in Year 8 of the project for ABC Inc 1 Calculate t... View the full answer