Find how much is total cash flow net of income tax in year

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Reference no: EM132720088

Problem 1: A corporation has provided the information below concerning a capital budgeting project. The company uses straight line depreciation on all equipment. How much is the total cash flow net of income taxes in year 3?

Tax rate 35%
Expected life of project 4
Investment required on equip $200,000
Salvage value $0
Annual sales $490,000
Annual cash operating expenses $380,000
One time renovation expense in year 3 $50,000

Reference no: EM132720088

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