Managerial Accounting
Managerial Accounting
14th Edition
ISBN: 9781337270595
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 13, Problem 1PB
To determine

Prepare a statement of cash flows using the indirect method for presenting cash flows from operating activities.

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If the project's cost of capital is 11%, what is the NPV of the project? What is the Year-0 net cash flow? $ -85,000   What are the net operating cash flows in Years 1, 2, and 3? Year 1: $25,403    Year 2: $27,682    Year 3: $21,606
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