What are the cash flows in years 1 2 and 3

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A project has a cost of $180. It will have a life of 3 years. The cost will be depreciated straight-line to a zero salvage value, and will be worth $40 at that time. Cash sales will be $200 per year and cash costs will run $110 per year. The firm will also need to invest $70 in net working capital at year 0. The appropriate discount rate is 8% (use for all flows), and the corporate tax rate is 40%. What are the cash flows in years 1, 2, and 3?

Reference no: EM131140649

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