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

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Q: NOTE: JUST DRAW THE CASH FLOW DIAGRAM

A: First cost = $ 75,000 Annual cost = $ 10,000 Salvage value = $ 15000 Interest rate = 12% Life = 8…

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A: Internal rate of return(IRR) is calculated in excel using IRR function as = IRR(Values)

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A:

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Q: 16. A 6-year project is expected to generate annual sales of 8,900 units at a price of $76 per unit…

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.