Management expects a project (see question 48) to generate EBIT of $600,000 per year for 4 years. Depreciation expense is expected to be $225,000 per year and the corporation’s tax rate is 40%. The project will require an increase in net working capital of $50,000 in year one and a decrease in net working capital of $25,000 in year four. The capital expenditure for the project will occur in year zero. What is the free cash flow for the project in year four?
1. Management expects a project (see question 48) to generate EBIT of $600,000 per year for 4 years.
2.. You are given the following information about BioWow Ethanol: common
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