Question: hi I need help answer the following question What is the project cash flow in year zero for this project? A project requires buying some
hi I need help answer the following question
What is the project cash flow in year zero for this project? A project requires buying some fixed assets that cost $40,000 immediately. These fixed assets will be depreciated straight-line to zero over its 4-year life. The project also requires a networking capital investment of $5,000 up front. The investment in NWC will recovered fully at the end of the life of the project. The project generates OCF of $17,000 each of the next four years, and the fixed assets will be sold for $7.000 after the four years. Assume that the tax rate for the firm is 34%. -$23.000 0-$40.000 O -$28,000 O -$45.000
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