Project and equipment life-5 years

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- Initial investment outlay of $30 million, consisting of $25 million for equipment and $5 million for net working capital (NWC) (plastic substrate and ink inventory); NWC recoverable in terminal year

- Project and equipment life: 5 years

- Sales: $25 million per year for five years

- Assume gross margin of 60% (exclusive of depreciation)

- Depreciation: Straight-line for tax purposes

- Selling, general, and administrative expenses: 10% of sales

- Tax rate: 35%What is the cash flows for project?

Reference no: EM132505702

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Project and equipment life-5 years : Initial investment outlay of $30 million, consisting of $25 million for equipment and $5 million for net working capital (NWC)
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