ABC, Inc is planning the purchase of a new equipment which will cost $26,526. The project is expected to last for 7 years. The equipment will have a book value of $3,629 at the end of Year 7. The increase in net working capital is expected to be $3,061, all of which will be recouped at the end of the project. The project is expected to have annual operating cash flows of $10,291. What is the Total Cash Flow in Year 7 of the project if the equipment can be sold for $6,185 and the tax rate is 37%? Note: In the last year of the project, the Total Cash Flow = Operating Cash Flow + Terminal Cash FlowEnter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
ABC, Inc plan
Plagiarism-free and delivered on time!
We are passionate about delivering quality essays.
Our writers know how to write on any topic and subject area while meeting all of your specific requirements.
Unlike most other services, we will do a free revision if you need us to make corrections even after delivery.
How it Works
Place an order
Fill out the order form.
Attach any custom instructions that is required to complete your order.
Pay online safely.
The order form will redirect you to a payment page.
Receive Order via Email
Once the order is complete, we’ll send it via the email provided on the order form.