Determining the annual after-tax cash flow

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Assume that an initial investment is $200,000. Also assume that the WACC is 20%. Assume that terminal cash flows net to zero.

If the project generates equal annual after-tax cash flows for the next 10 years, how much does the annual after-tax cash flow have to be for this to be an acceptable project? (Be sure to show all of your work. Just putting down a number will result in no points).

Reference no: EM132477985

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