What is the total cash flow in year eight of project

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ABC, Inc is planning the purchase of a new equipment which will cost $39,535. The project is expected to last for 8 years. The equipment will have a book value of $3,236 at the end of Year 8. The increase in net working capital is expected to be $4,191, all of which will be recouped at the end of the project. The project is expected to have annual operating cash flows of $15,954. What is the Total Cash Flow in Year 8 of the project if the equipment can be sold for $4,571 and the tax rate is 36%?

Reference no: EM132006058

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