Determine the projected cash flow in the first year

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Question - Richard Pangestu, a CFO at the company, is trying to estimate the cash flow of a project. The company is subject to a tax rate of 40% and WACC of 10%. The staff in the finance department provided the following information:

Sales Rp12.000.000

Operational Cost (without depretiation) Rp9.000.000

Depretiation Rp1.750.000

Required -

a. Determine the projected cash flow in the first year (t = 1).

b. Determine the projected cash flow in the first year if the tax rate decreases by 5%.

Reference no: EM133093531

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