Mideque, inc. is considering a project to produce pens. It is estimates that the initial cost of
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Question:
Assume that the working capital requirement will be $2,000 and that the IRS allows an investment tax credit of 1% for this kind of project. Also, assume that at the end of the life of this project the company discovers that the equipment must be recycled for $3,000. Pbtain the annual cash flow of the last period.
Options:
A. 6400
B. 6000
C. 11000
D. 5400
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1118845899
3rd edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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