Determine net incremental cash inflow

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Reference no: EM132046472

If ABC Company builds a new factory, then 11 years from now ABC's depreciation will be $8,325.00 more than if no factory were built. For the same year, a colleague of yours determined that the net cash flow after taxes would be $2,462.92 more than if no factory were built. However, your colleague totally ignored the depreciation because she thought that depreciation is not a cash flow. ABC's marginal tax rate is 40.00% and the required rate of return on this factory is 9.50%. Determine ABC's net incremental cash inflow that would result 11 years from now as a result of building the factory.

Reference no: EM132046472

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