What is the project total cash flow for given year

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Reference no: EM132059643

Question: A project has an initial requirement of $300,000 for fixed assets and $30,000 for net working capital. The fixed assets will be depreciated to a zero book value over the 3-year life of the project and have an estimated salvage value of $150,000. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $250,000 and the discount rate is 12 percent. What is the project's total cash flow for year 3 if the tax rate is 30 percent?

Reference no: EM132059643

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