A 4-year project has an annual operating cash flow of $58,000. At the beginning of the project, $4,900 in net working capital was required, which will be recovered at the end of the project. The firm also spent $23,700 on equipment to start the project. This equipment will have a book value of $5,180 at the end of the project, but can be sold for $6,060. The tax rate is 35 percent. What is the Year 4 cash flow?

What is the difference between a public and a private corporation?

Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where mr

You are evaluating two different silicon wafer milling machines. the techron i costs $285,000, has a three-year life, and has pretax operating costs of $78,000 per year. the techron ii costs $495,000, has a five-year life, and has pretax operating costs of $45,000 per year. for both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $55,000. if your tax rate is 24 percent and your discount rate is 11 percent, compute the eac for both machines.