super urgent Cochran Enterprises has sales of 900 000 $. The company initially invested in a packaging system with a cos
Posted: Wed May 18, 2022 10:33 pm
super urgent
Cochran Enterprises has sales of 900 000 $. The company
initially invested in a packaging system with a cost of $735,000.
This cost will be depreciated straight-line to zero over the
project’s 7-year life. The pretax operating costs are $215,000 per
year, and the system requires an initial investment in net working
capital of $67,000. If the tax rate is 38% and the discount rate is
8%, what is the project’s Year 1 free cash flow? Round up your
answer to the nearest whole number.
Cochran Enterprises has sales of 900 000 $. The company
initially invested in a packaging system with a cost of $735,000.
This cost will be depreciated straight-line to zero over the
project’s 7-year life. The pretax operating costs are $215,000 per
year, and the system requires an initial investment in net working
capital of $67,000. If the tax rate is 38% and the discount rate is
8%, what is the project’s Year 1 free cash flow? Round up your
answer to the nearest whole number.