You are performing a capital budgeting (capital planning) analysis and are considering a five-year project that would
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You are performing a capital budgeting (capital planning) analysis and are considering a five-year project that would provide $42,500 a year in sales with $17,000 in cash operating costs. It would cost $50,000 and would be fully- depreciated straight-line over 5 years. Interest expenses for the company are expected to be $4,000 per year. The company tax rate is 35%. What is the appropriate cash flow to use for the project in year 1 of your analysis?
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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