Question: Question 32 2 p Use the following information for problems #32 through #34: A 3-year project requires an initial $20,000 investment in net working capital,
Question 32 2 p Use the following information for problems #32 through #34: A 3-year project requires an initial $20,000 investment in net working capital, which will be recovered when the project ends, and the purchase of fixed assets that cost $300,000. The fixed assets will be fully depreciated, straight-line, to a zero terminal value over the 3-year project life; the market value of the assets at the end of the project are zero. The project is forecast to generat $500,000 in revenues with $300,000 in production costs for each of the 3 years, the firm has a 40% tax rate, and the project required return is 10%. What is the project's operating cash flow (OCF)? es $160,000 $200,000 O $80,000 O $100.000 O $120,000
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