What is the marginal cash flow of compact battery project

Reference no: EM131971751

Questiop: You are evaluating whether to proceed with the next phase of your company's compact battery project. The intent of compact batteries is to store off-peak power (e.g., electricity generated at night) for use during on-peak demand. Your compact battery prototype is large enough to power one standard home. Additional development costs required before production are estimated to be $5.85 million. The tax rate is 29.7%. These development costs would be an upfront expense. What is the marginal cash flow for the expected additional development costs to include in the evaluation of the compact battery project?

Reference no: EM131971751

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