Question: Thomson Media is considering some new equipment whose data are shown below. The equipment has a 3-year tax life and would be fully depreciated by
Thomson Media is considering some new equipment whose data are shown below. The equipment has a 3-year tax life and would be fully depreciated by the MACRS method over 3 years, but it would have a positive pre-tax salvage value at the end of Year 3, when the project would be closed down. Also, additional net operating working capital would be required, but it would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the projects 3-year life. What is the project's operating cash flow in Year 2? Make sure to create a table and write down the number in the appropriate lines in addition to providing your answer. Failure to provide the table you used to come up with the answer will results in earning no pints towards this
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