What is the operating cash flow for year 5 of project A that Green Forest...

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Finance

What is the operating cash flow for year 5 of project A that Green Forest Technology should use in its NPV analysis of the project? The tax rate is 10 percent. During year 5, project A is expected to have relevant revenue of 86,000 dollars, relevant variable costs of 22,000 dollars, and relevant depreciation of 15,000 dollars. In addition, Green Forest Technology would have one source of fixed costs associated with the project A. Yesterday, Green Forest Technology signed a deal with Carl Advertising to develop a marketing campaign. The terms of the deal require Green Forest Technology to pay Carl Advertising either 21,000 dollars in 5 years if project A is pursued or 24,000 dollars in 5 years if project A is not pursued. Finally, the equipment purchased for the project would be sold in 5 years for an expected after-tax cash flow of 14,000 dollars.

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