Question: Your company, RMU Inc., is considering a new project whose data are shown below. What is the project's Year 1 cash flow? You may assume

Your company, RMU Inc., is considering a new project whose data are shown below. What is the project's Year 1 cash flow? You may assume that the firm will have no capital expenditures (CAPEX) in year 1 and that it will also not change its working capital during year 1.

Data:

Sales revenues $21,750

Depreciation $8,000

Other operating costs $12,000

Tax rate 35.0%

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