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You are evaluating a potential investment project for your employer, IDGAF Inc. The 9-year project...

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Finance

You are evaluating a potential investment project for your employer, IDGAF Inc. The 9-year project requires an upfront investment in operationally related net working capital of $24,000, which is expected to be recovered in full.

The $169,000 investment in property, plant, and equipment, although being depreciated straight-line to $0 over the life of the project, is expected to be salvageable for 9% of its purchase price. The only depreciation and amortization tied to the project is associated with this PPE investment.

EBITDA for the final year of the project is expected to be $26,000. The applicable corporate tax rate is 20%. What is the incremental free cash flow for the final year of the project to the nearest whole dollar?

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