What is the cash flow for the project

Reference no: EM132056867

Question: A project has an annual operating cash flow of $52, 620. Initially, this four-year project required $5, 160 in net working capital, which is recoverable when the project ends. The firm also spent $39, 700 on equipment to start the project. This equipment will have a book value of $17, 014 at the end of Year 4. What is the cash flow for Year 4 of the project if the equipment can be sold for $15, 900 and the tax rate is 35 percent?

Reference no: EM132056867

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