A project that is expected to last six years will generate a profit and cash flow contribution before taxes and depreciation of $23,000 per year. It requires the initial purchase of equipment costing $60,000, which will be depreciated straight line over four years. The relevant tax rate is 25%. Calculate the project’s cash flows. Round all figures within your computations to the nearest thousand dollars. please explain how you arrived at your figures

A project that is expected to last six years will generate a profit and cash flow contribution before taxes and depreciation of $23,000 per year. It requires the initial purchase of equipment costing...

A project that is expected to last six years will generate a profit and cash flow contribution before taxes and depreciation of $23,000 per year. It requires the initial purchase of equipment costing $60,000, which will be depreciated straight line over four years. The relevant tax rate is 25%. Calculate the project’s cash flows. Round all figures within your computations to the nearest thousand dollars. please explain how you arrived at your figures

Jun 01, 2022