Question: Your team is evaluating a project, if approved, will generste sales in year 2022. your colleague estimated the following financials for you. due to the
Sales Cost of Goods Sold Selling, general and administrative expense Depreciation Earnings Before Interest and Taxes Interest Expense Earnings Before Taxes Taxes (tax rate = 20%) Net Income Year 2022 5,000 2,000 600 400 2,000 200 1,800 360 1,440 Net working capital components Inventory Accounts Receivable Accounts Payable Year 2021 Year 2022 800 1,000 0 1,600 0 800
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