What is the operating cash flow of project

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Reference no: EM131915274

Wilsons is considering a project which will initially require $12,000 for new equipment. The equipment will be depreciated straight line to a zero book value over the three year life of a project. In addition, the project will require $30,000 of net working capital which will be recovered at the end of the project. Annual sales are estimated at $45,000 with costs of $32,400. The equipment has an expected salvage value of $1,200. The tax rate is 34%. What is the Operating Cash Flow (OCF) of this project?

Reference no: EM131915274

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