As a big firm's CFO, you must forecast the Year 1 cash flow for a proposed project with the following data. What is the Year 1 cash flow? Do not round the intermediate calculations and round the final answer to the nearest whole number. Sales revenues, each year $39, 500 Depreciation $10,000 Other operating costs $17,000 Interest expense $4,000 Tax rate 35.0%

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk
Section: Chapter Questions
Problem 2P
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As a big firm's CFO, you must
forecast the Year 1 cash flow for
a proposed project with the
following data. What is the Year
1 cash flow? Do not round the
intermediate calculations and
round the final answer to the
nearest whole number. Sales
revenues, each year $39, 500
Depreciation $10,000 Other
operating costs $17,000 Interest
expense $4,000 Tax rate 35.0%
Transcribed Image Text:As a big firm's CFO, you must forecast the Year 1 cash flow for a proposed project with the following data. What is the Year 1 cash flow? Do not round the intermediate calculations and round the final answer to the nearest whole number. Sales revenues, each year $39, 500 Depreciation $10,000 Other operating costs $17,000 Interest expense $4,000 Tax rate 35.0%
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