What is the fcf year

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A firm is considering investing a project to reduce costs by $90,000 annually. The equipment costs $210,000, had a 4-year life (will be depreciated as a 3-year MACRS asset: 33% for the first year, 45% for the second year, and 15% for the third year), requires $25,000 initial net working capital, and has a before-tax salvage value of $50,000. Tax rate is 21%. What is the FCF each year?

Reference no: EM133058339

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