The tax rate is 35 percent and the required rate of return


A project will require $543,000 for fixed assets, $218,000 for inventory, and $42,000 for accounts receivable. Short-term debt is expected to increase by $165,000. The project has a six-year life. The fixed assets will be depreciated staight-line to a zero book value over the life of the project. The project is expected to generate annual sales of $905,000 with costs of $730,000. The tax rate is 35 percent and the required rate of return is 14 percent. What is the project's cash flow at Time 0. Please show work.

A. -536,000

B. -944,000

C. -720,000

D. -779,000

E. -638,000

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Financial Management: The tax rate is 35 percent and the required rate of return
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