Calculate the operating cash flows over the five years

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Question - Premier Industries is to invest R400 000 in new equipment, excluding installation costs of R50 000. The equipment will be depreciated on a straight line basis over its five-year useful life. The following are the expected incremental increases in net operating profit (loss) after taxes (NOPAT) over the five-year life of the equipment:

YEAR

R

1

110,000

2

112,000

3

120,000

4

124,000

5

130,000

Required - Calculate the operating cash flows over the five years for Premier Industries.

Reference no: EM133057694

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