Question: I got so confused about this question. please take a look and figure out for me. thanks Phone Home, Inc. is considering a new 6-year
I got so confused about this question. please take a look and figure out for me. thanks


Phone Home, Inc. is considering a new 6-year expansion project that requires an initial fixed asset investment of $5,994,000. The fixed asset falls into the five-year MACRS class and will be worthless at the end of its life. The project is estimated to generate $5,328,000 in annual sales, with costs of $2,131,200 The tax rate is 16 percent. What is the operating cash flow for the fourth year of this project? Bentley Mews is considering a new 4-year expansion project that requires an initial fixed asset investment of $3 million. The fixed asset will be depreciated straight- line to zero over its 4-year tax life, after which time it will be sold. Assume it will be sold for $231,000, its estimated market value at the end of four years. The project requires an initial investment in net working capital of $330,000, all of which will be recovered at the end of the project. The project is estimated to generate $2,640,000 in annual sales, with costs of $1,056,000. The tax rate is 30 percent and the required return for the project is 11.0 percent. What is the net present value for this project
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