Solution-Calculate the cash flows for the project

Calculate the cash flows for the project

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Reference no: EM132537829

Answer the questions below and submit a document of your solutions. You must show your work or no credit will be given; no exceptions.

Given the following, calculate the cash flows for the project.

-Initial investment $365,000

-Expected life is 5 years

-First Year Revenues: 245,000

-First Year Expenses: $70,000

-Growth for revenue and expenses: 3 percent per year

-Straight Line Depreciation over 5 years

-Salvage Value: $45,000

-One-time net working capital investment of $10,000 required at the start of the project

-This investment is recovered at the end of the project

-The tax rate is 34 percentAnswer the following:

What are the cash flows for each year?

Reference no: EM132537829

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Calculate the cash flows for the project

Reference no: EM132537829

Reference no: EM132537829

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