A project has an annual operating cash flow of $15,403. Initially, this 4-year project required $2,271 in net working capital, which is recoverable when the project ends. The firm also spent $10,000 on equipment to start the project. This equipment will have a book value of $3,255 at the end of year 4.What is the Total Cash Flow in Year 4 of the project if the equipment can be sold for $4,537 and the tax rate is 25%?
Since Year 4 is the last year of the project, Total Cash Flow in Year 4 = Operating Cash Flow + Terminal Cash Flow