Question: Saved Help Save & Exit Russell Construction is trying to decide whether to purchase a large construction crane. The crane will cost $10,000,000, and will
Saved Help Save & Exit Russell Construction is trying to decide whether to purchase a large construction crane. The crane will cost $10,000,000, and will be depreciated to zero over the 4 year life of the project. The company has determined that the annual operating cash flow generated by the crane would be $3,790,000, and a competitor has told the company they will buy the crane at the end of Year 4 for $1,000,000. No additional working capltal will be needed for the project. Assuming a tax rate of 21%, what is the Year 4 cash flow of the project? Multiple Choice ST1000,000 14700.000 51.860,000 54 267000 54580.000 Dre! 1 AN Ale
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