Question: Le Place has sales $ 4 3 9 , 0 0 0 , depreciation of $ 3 2 , 0 0 0 , and net
Le Place has sales $ depreciation of $ and net working capital of $ The firm has a tax rate of and a profit margin of The firm has no interest expense. What is the amount if the operating cash flow?
$
The cashflows for Project are;
Yr ; $; Yr : ; Yr : ; Yr :
The cashflows flr Project are:
Yr ; $; Yr : ; Yr : ; Yr :
The crossover rate is and if the required rate is higher than the crossover rate then project should be accepted.
The equipment below is required for your business. Assume each will be replaced as it wears out. The required return is
tableMachine AMachine BInitial cost$$
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