Question: i need help on this question Revenues generated by a new fad product are forecast as follows: Year Revenues $32,029 N 40,000 3 20,000 4
i need help on this question
Revenues generated by a new fad product are forecast as follows: Year Revenues $32,029 N 40,000 3 20,000 4 10,000 Thereafter o Expenses are expected to be 50% of revenues, and working capital required in each year is expected to be 20% of revenues in the following year. The product requires an immediate investment of $40,000 in plant and equipment that will be depreciated using the straight-line method over 5 years. The firm recently spent $2,000 on a study to estimate the revenues of the new product. The tax rate is 20%. What is the operating cash flow in year 12. Answer to nearest whole dollar amount
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