Question: Philip Enterprises is considering a new project. The project will have earnings before interest and taxes equal to $300,000 a year for three years. The

Philip Enterprises is considering a new project. The project will have earnings before interest and taxes equal to $300,000 a year for three years. The initial cash investment in the project will be $450,000 and will be depreciated to zero over three years. Taxes equal 25% per year. It generates a depreciation of $150,000 per year. Answer the following questions on the basis of this information?

What is the operating cash flow for this project on a per-year basis?

What is the total cash flow in year 0?

What is the total cash flow in year 3?

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