7.3 q3 A project requires an increase of $1800 in Net Working Capital at the beginning of the project, which will be fully recovered after the completion of the project. Equipment with a book value of $11,000 will be sold at the end of the project for a salvage value of $5,000. The tax rate is 20%. What is the incremental free cash flow in the year following the end of the project? a. $2000 b. $5600 c. $8000 d. $4400
7.3 q3 A project requires an increase of $1800 in Net Working Capital at the beginning of the project, which will be fully recovered after the completion of the project. Equipment with a book value of $11,000 will be sold at the end of the project for a salvage value of $5,000. The tax rate is 20%. What is the incremental free cash flow in the year following the end of the project? a. $2000 b. $5600 c. $8000 d. $4400
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 22E
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Question
7.3 q3
A project requires an increase of $1800 in Net
a.
$2000
b.
$5600
c.
$8000
d.
$4400
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