What is the projects total nominal cash flow from assets


Gallatin inc is considering an investment of 380,000 in an asset with an economic life of five years. The firm estimates that the nominal annual cash revenues and expenses at the end of the first year will be 260,000 and 85,000 respectively. Both revenues and expenses will grow thereafter at the annual inflation rate of 2%. The company will use the straight line method to depreciate its asset to zero over five years. The salvage value of the asset is estimated to be 60,000 in nominal terms at that time. The one time net working capital investment of 17,500 is required immediately and will be recovered at the end of the project. All corporate cash flows are subject to a 38% tax rate. What is the projects total nominal cash flow from assets for each year? A negative answer should be indicated with a minus sign. Do not round intermediate calculations. And round your answers to the nearest whole dollar, e,g., 32 Year 0 Year 0 Year 2 Year3 Year4 Year 5.

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Financial Management: What is the projects total nominal cash flow from assets
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