Question: no excel please need help on how to find the cash flow after tax salvage value and NPV there is no discount rate... Down Under
Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $1.5 million. The fixed asset will be depreciated straight-line to zero over its five-year tax life. At the end of the project, the asset can be sold for $300,000. The project also requires $800,000 net working capital at the beginning of the project. The project is estimated to generate $1.2 million in annual sales, with costs of $500,000. The tax rate is 40%. Answer the following questions. (Round your final answer to the nearest integer. Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $1.5 million. The fixed asset will be depreciated straight-line to zero over its five-year tax life. At the end of the project, the asset can be sold for $300,000. The project also requires $800,000 net working capital at the beginning of the project. The project is estimated to generate $1.2 million in annual sales, with costs of $500,000. The tax rate is 40%. Answer the following questions. (Round your final answer to the nearest integer
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