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HD "O hot submitted Attempts Remaining: Infinity ABC Corporation has hired you to evaluate a...

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Accounting

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HD "O hot submitted Attempts Remaining: Infinity ABC Corporation has hired you to evaluate a new FOUR year project for the firm. The project will require the purchase of a $832,400,00 work coll. Further, it will cost the firm $53,400.00 to get the work cell delivered and installed. The work cell will be straight-line depreciated to zero with a 20-year useful life. The project will require new employees to be trained at a cost of $54,200.00. The project will also use a piece of equipment the firm already owns. The equipment has been fully deprecated, but has a market value of $5.700.00. Finally, the firm will invest $11,100.00 in networking capital to ensure the project has sufficient resources to be successful The project will generate annual sales of 5912,000.00 with expenses estimated at 30.00% of sales. Net working capital will be held constant throughout the project. The tax rate is 40.00%. The work ooit is estimated to have a market value of $458,000.00 at the end of the fourth year. The firm expects to reclaim 80.00% of the final NWC position The cost of capital is 10.00% What is the yearly operating cash flow for the project? But Answer format: Currency: Pound to: 2 decimal places

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