Question: Fredrics is considering a project that will require $29,000 in net working capital and $87,000 in fixed assets. The project is expected to produce annual
Fredrics is considering a project that will require $29,000 in net working capital and $87,000 in fixed assets. The project is expected to produce annual sales of $75,000 with associated costs of $57,000. The project has a 5-year life. The company uses straight-line depreciation to a $0 book value over the life of the project. The tax rate is 21 percent. What is the operating cash flow for this project?
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