What is the total cash flow in year of the project

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Reference no: EM131931405

Question: ABC, Inc is planning the purchase of a new equipment which will cost $33,638. The project is expected to last for 4 years. The equipment will have a book value of $3,673 at the end of Year 4. The increase in net working capital is expected to be $3,191, all of which will be recouped at the end of the project. The project is expected to have annual operating cash flows of $13,833. What is the Total Cash Flow in Year 4 of the project if the equipment can be sold for $4,211 and the tax rate is 34%? Note: In the last year of the project, the Total Cash Flow = Operating Cash Flow + Terminal Cash Flow

Reference no: EM131931405

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