Recovery of earlier increase in working capital and in


Ceteris paribus, assume the following: Year Zero: Capital investment= $ 6 million and increase 0f $500,000 in needed inventory; Year1-4: OCF= $ 4,500,000 PER YEAR; Year 4: Recovery of earlier increase in working capital and in addition, cash flow from salvage of $500,000. What is the incremental cash flow for year 4?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Recovery of earlier increase in working capital and in
Reference No:- TGS02827870

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)