What is the estimated FCF in year

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Question - You have decided to introduce a new line of cat carriers. You will need a new equipment that costs $12,300,000 and can be depreciated on a MACRS three-year basis. After three years, you plan to sell the equipment for $5,000,000. The new carriers will also require an increase in NWC of $2,100,000 that will be recuperated at the end of the project. You have an effective tax rate of 40%. What is the estimated FCF in year 0?

Reference no: EM132954464

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