Finally the equipment purchased for the project would be


What is the operating cash flow for year 3 of project A that Green Forest Media should use in its NPV analysis of the project? The tax rate is 25 percent. During year 3, project A is expected to have relevant revenue of 78,000 dollars, relevant variable costs of 24,000 dollars, and relevant depreciation of 18,000 dollars. In addition, Green Forest Media would have one source of fixed costs associated with the project A. Yesterday, Green Forest Media signed a deal with Jabari Advertising to develop a marketing campaign. The terms of the deal require Green Forest Media to pay Jabari Advertising either 20,000 dollars in 3 years if project A is pursued or 24,000 dollars in 3 years if project A is not pursued. Finally, the equipment purchased for the project would be sold in 3 years for an expected after-tax cash flow of 6,000 dollars.

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Financial Management: Finally the equipment purchased for the project would be
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