Project has an annual operating cash flow

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A project has an annual operating cash flow of $15,403. Initially, this 4-year project required $2,271 in net working capital, which is recoverable when the project ends. The firm also spent $10,000 on equipment to start the project. This equipment will have a book value of $3,255 at the end of year 4.What is the Total Cash Flow in Year 4 of the project if the equipment can be sold for $4,537 and the tax rate is 25%?

Since Year 4 is the last year of the project, Total Cash Flow in Year 4 = Operating Cash Flow + Terminal Cash Flow

Reference no: EM131197644

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