medium · Principles of Finance capital-budgeting
In the final year of a 5-year capital project, a company expects 1,000 in after-tax operating cash flow. It also recovers $200 in working capital and sells the equipment for $100 (book value is $0, tax rate is 25%).
What is the total cash flow for Year 5?
- 1,200
- 1,300
- 1,075
- 1,275
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