Question: (CB CFS) A capital budgeting project will cause EBIT to increase by $42147 per year. The annual depreciation expense is $43867. The firm's tax rate

(CB CFS) A capital budgeting project will cause EBIT to increase

(CB CFS) A capital budgeting project will cause EBIT to increase by $42147 per year. The annual depreciation expense is $43867. The firm's tax rate is 24%. At the end, the equipment will be sold for its salvage value of $44863; its book value will be $35842 at that time. The initial increase in net working capital of $15770 will be recaptured at the end of the project's life. What is the cash flow in the last year of the project's life, in $? Include both the annual FCF and the terminal CF

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