Firm b is considering a project with an active life of 2


Firm B is considering a project with an active life of 2 years. The cost of capital is 15%. Year 0: Capital expenditure is $3500; Working capital is $900. Year 1: Working capital is $800; Operating cashflow is $3100. Year 2: $1400 operating cash flow There is no working capital at the end of year 2, and there is no salvage or book value at the end of Year 2. What are the free cash flows in years 0, 1, and 2?

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Financial Management: Firm b is considering a project with an active life of 2
Reference No:- TGS02609486

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