What is the total cash flow for this project in year

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Phone Home, Inc. is considering a new 6-year expansion project that requires an initial fixed asset investment of $5.994 million. The fixed assets fall into a 5-year MACRS category, and it is expected that the assets will have no salvage value at the end of the project. The project is estimated to generate $5,328,000 in annual sales, with costs of $2,131,200. The tax rate is 31 percent. What is the total cash flow for this project in year 1?

Reference no: EM13914453

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