What is the annual before-tax cash flow each year


Question:

A co.'s new project calls for an investment of 10K. It has an estimated life of 10 hears. The IRR has been calculated to be 15%. If cash flows are evenly distributed and the tax rate is 40%, what is the annual before-tax cash flow each year? (assume depreciation is a negligible amount)

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the annual before-tax cash flow each year
Reference No:- TGS02046503

Now Priced at $20 (50% Discount)

Recommended (91%)

Rated (4.3/5)