What is the total cash flow in year six of the project

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Reference no: EM132004308

ABC, Inc is planning the purchase of a new equipment which will cost $34,485. The project is expected to last for 6 years. The equipment will have a book value of $3,336 at the end of Year 6. The increase in net working capital is expected to be $2,231, all of which will be recouped at the end of the project. The project is expected to have annual operating cash flows of $12,405. What is the Total Cash Flow in Year 6 of the project if the equipment can be sold for $5,163 and the tax rate is 25%?

Reference no: EM132004308

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