Caballo's Stables has been considering a new project. The first year's cash flow (CF1) for...
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Caballo's Stables has been considering a new project. The first year's cash flow (CF1) for this project is expected to be $486,000. However, it has just come to light that this project is likely to cannibalize other projects of the company resulting in lost before-tax cash flows of $66,000. If the company's tax rate is 25%, what is your revised estimate of the project's first year cash flow?
$420,000
$436,500
$486,000
$545,400
$552,000
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