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Chapter 12, Problem 2P

a.

Summary Introduction

To compute: The project’s cash flow for the first year.

Project’s Cash Flows:

Cash flow statement is prepared to see the position of cash. The cash flow for the specific project is known as the project cash flow.

b.

Summary Introduction

To compute: The cash flow of project when the cash flow before tax is $1million.

c.

Summary Introduction

To compute: The project’s cash flow for the first year if the tax rate is 30%.

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Chapter 12 Solutions

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