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Solid Foundation Contractors is expecting revenue of $150,000 next year, labour costs of $20,000, materials...

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Accounting

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Solid Foundation Contractors is expecting revenue of $150,000 next year, labour costs of $20,000, materials of $20,000, and overhead of $10,000. SFC just bought a piece of equipment for $300,000 and the CCA rate for that piece of equipment was 30%. Their tax rate is 40%. Lastly, every dollar of the $300,000 was borrowed from the bank at a rate of 10% and is to be paid back over 5 years in equal annual payments. Develop the cash flow/ investment including as many details as possible. What is the net cash flow over 6 years (6 points)? If there were working capital (WC) required for this project, which year or years does it show up in the statement(s)? (1 point)

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