Compute the total cash flow per year

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Problem 1: Suppose you are the only owner of a firm, John Adams Co, a food production company located in Toronto. You are to consider a new project that requires $1,200,000 finance with the interest rate of 12% and is expected to generate additional cash flow of $150,000 each year. In terms of financing, you are to borrow the money from you. Compute the total cash flow per year if the corporate tax of 35% is imposed.

Reference no: EM132965464

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