Ceteris paribus, assume the following: Year Zero: Capital Investment = $5 million and increase of...
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Ceteris paribus, assume the following: Year Zero: Capital Investment = $5 million and increase of $250,000 in needed inventory; Years 1-4: OCF = $4 million per year; Year 4: Recovery of one-half the earlier increase in working capital plus cash flow from salvage of $3 million. What is the incremental cash flow for this project in year 4? *** OA. $2.525 million B. $7.125 million OC. $6.500 million OD. $4.575 million
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