Question: Calculating Project Cash Flow from Assets In the previous problem, suppose the project requires an initial investment in net working capital of $250,000, and the
Calculating Project Cash Flow from Assets In the previous problem, suppose the project requires an initial investment in net working capital of $250,000, and the fixed asset will have a market value of $180,000 at the end of the project. What is the projects Year 0 net cash flow? Year 1? Year 2? Year 3? What is the new NPV? NPV and Bonus Depreciation
In the previous problem, suppose the fixed asset actually qualifies for 100 percent bonus depreciation. All the other facts are the same. What is the projects Year 1 net cash flow now? Year 2? Year 3? What is the new NPV?
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