Question: Eastern Tech is considering a new project that will require $ 1 0 9 , 0 0 0 of fixed assets and net working capital
Eastern Tech is considering a new project that will require $ of fixed assets and net working capital of $ The fixed assets will be depreciated on a straightline basis to zero salvage value over years. The project is expected to produce an operating cash flow of $ in the first year with that amount decreasing by annually for two years before the project is shut down. The fixed assets can then be sold for $ at the end of the project and all of the working capital will be recovered. The discount rate is and the tax rate is What is cash flow for year and NPV
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