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Calculate the operating cash flow in year 1

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Reference no: EM132507078

Simon Co. is evaluating different equipment. Machine A costs $65,000 per year has a five-year life, and costs $20,000 per year to operate. The machine will be depreciated using straight-line and the relevant discount rate is 10%. The machine will have a salvage value of $10,000 at the end of the project's life. The firm has a tax rate of 21%.

A.) Calculate the operating cash flow in year 1. (Enter a negative value)

B.) Calculate the NPV of project. (Enter a negative value and round to 2 decimals)

C.) Calculate the EAC for the project.

Reference no: EM132507078

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