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Thaler & Co. project has operational annual cash flows of $2,500,000. During the project, they had anticipated an increase in accounts receivable of $1,500,000, an increase in inventory of $6,000,000, and an increase in accounts payable of $4,000,000. After the project, they plan to sell their project equipment for its salvage value of $1,500,000. Their tax rate is 21%. What is this project's terminal cash flow? $5,925,000 $7,500,000 O $6,000,000 $4,000,000 $500,000

Thaler & Co. project has operational annual cash flows of $2,500,000. During the project, they had anticipated an increase in accounts receivable of $1,500,000, an increase in inventory of $6,000,000, and an increase in accounts payable of $4,000,000. After the project, they plan to sell their project equipment for its salvage value of $1,500,000. Their tax rate is 21%. What is this project's terminal cash flow? $5,925,000 $7,500,000 O $6,000,000 $4,000,000 $500,000

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Am. 108.

Thaler & Co. project has operational annual cash flows of $2,500,000. During the project, they had anticipated an increase in accounts receivable of $1,500,000, an increase in inventory of $6,000,000, and an increase in accounts payable of $4,000,000. After the project, they plan to sell their project equipment for its salvage value of $1,500,000. Their tax rate is 21%. What is this project's terminal cash flow? $5,925,000 $7,500,000 O $6,000,000 $4,000,000 $500,000
Transcribed Image Text:Thaler & Co. project has operational annual cash flows of $2,500,000. During the project, they had anticipated an increase in accounts receivable of $1,500,000, an increase in inventory of $6,000,000, and an increase in accounts payable of $4,000,000. After the project, they plan to sell their project equipment for its salvage value of $1,500,000. Their tax rate is 21%. What is this project's terminal cash flow? $5,925,000 $7,500,000 O $6,000,000 $4,000,000 $500,000
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