KTS is trying to estimate the first-year operating cash flow. The financial staff has given Dante the
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Question:
KTS is trying to estimate the first-year operating cash flow. The financial staff has given Dante the following information:
Incremental revenue = $9 |
Depreciation = $3 |
Interest Expense = $1 |
Marginal tax rate = 50% |
Consider the following series of cash flows:
Cash Flow: | -50 | 20 | 10 | 10 | 20 | 20 |
Time: | 0 | 1 | 2 | 3 | 4 | 5 |
What is the payback period?
Related Book For
Financial Management Theory And Practice
ISBN: 978-0176583057
3rd Canadian Edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
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