Your company is considering a new project whose data are shown below. The required equipment...
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Accounting
Your company is considering a new project whose data are shown below. The required equipment has a 5- year economic life, and it will be depreciated by the straight-line method. Revenues and other operating costs are expected to be constant over the projects life. What is the projects Year 5 cash flow?
Equipment cost $50,000
Shipping and installation cost $5,000
Investment in net operating working capital $6,000
Salvage value $5,000
Sales revenue, each year, $20,000
Operating costs (excluding depreciation) $6,000
Tax rate 35%
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