A project has the following projected financial data for its first year of operation. ...

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Finance

A project has the following projected financial data for its first year of operation.

ITEM

AMOUNT

Sales

$500,000

Cost of Goods

$200,000

Other expenses

$100,000

Depreciation

$50,000

Investment in NWC

$20,000

Investment in Gross PPE

$0

Interest Expense

$40,000

If the tax rate for the firm is 30%, what is the project cash flow for the first year based on this information?

Question 10 options:

$75,000

$107,000

$135,000

$155,000

$205,000

Answer & Explanation Solved by verified expert
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