Cochran Enterprises has sales of 900 000 $. The company initially invested in a packaging...
70.2K
Verified Solution
Link Copied!
Question
Finance
Cochran Enterprises has sales of 900 000 $. The company initially invested in a packaging system with a cost of $735,000. This cost will be depreciated straight-line to zero over the projects 7-year life. The pretax operating costs are $215,000 per year, and the system requires an initial investment in net working capital of $67,000. If the tax rate is 33% and the discount rate is 8%, what is the projects Year 1 free cash flow? Round up your answer to the nearest whole number.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
