Question: If a new project is implemented, it is expected to generate $800,000 in revenues. $250,000 in cash operating expenses, and depreciation expense of $150,000 in
If a new project is implemented, it is expected to generate $800,000 in revenues. $250,000 in cash operating expenses, and depreciation expense of $150,000 in each year of its 10-year life. The corporation's tax rate is 35%. The project will require an increase in net working capital of $85.000 and a decrease in net working capital of $75,000 in year ten. What is the free cash flow from the project in year one? OA. $380,000 OB. $410,000 O c. $375,000 OD. $298,000 www
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