What is the cash flow for year four

Assignment Help Financial Management

Reference no: EM131933840

A project has an operating cash flow of $31,600. Initially, this 4-year project required $7,200 in net working capital, which is recoverable when the project ends. The firm also spent $16,700 on equipment to start the project. This equipment will have a book value of $2,100 at the end of year 4. What is the cash flow for year 4 of the project if the equipment can be sold for $4,800 and the tax rate is 30.4 percent?

Reference no: EM131933840

Questions Cloud

The initial costs for net working capital : What amount should be included in the initial costs for net working capital?

The goal of negotiation is to develop short-term partnership : Generally, the goal of negotiation is to develop a short-term partnership with a buyer.

What is bond nominal yield to maturity : A bond that matures in 8 years has 9.5% coupon rate, a face value of $1,000, and an 8.2% current yield. What is the bond's nominal yield to maturity?

What is the expected stock price eight years from today : The stock's beta is 1.2, the risk-free rate is 4%, and the market risk premium is 5%. What is the expected stock price 8 years from today?

What is the cash flow for year four : What is the cash flow for year 4 of the project if the equipment can be sold for $4,800 and the tax rate is 30.4 percent?

What is the price per share of the common stack : What is the price per share of the common stack of Shane's Aircraft?

What is the annual coupon payment for bond : What is the annual coupon payment for a bond (par value of $1,000) with 7 years until maturity, a price of $1,000, and a discount rate of 6%?

The initial costs of the project : what value should be assigned to this machine and included in the initial costs of the project?

Assigned to the press and included in initial project cost : What value should be assigned to the press and included in the initial project cost?

User Account

All Pages