question archive A project that is expected to last six years will generate incremental profit and cash flow before taxes and depreciation of $23,000 per year

A project that is expected to last six years will generate incremental profit and cash flow before taxes and depreciation of $23,000 per year

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A project that is expected to last six years will generate incremental profit and cash flow before taxes and depreciation of $23,000 per year. It requires the initial purchase of equipment costing $60,000, which will be depreciated over four years. The relevant tax rate is 32%. Calculate the project's cash flows. Enter your answers in thousands. For example, an answer of $1 thousand should be entered as 1, not 1,000. Round your intermediate calculations and final answer to the nearest thousand dollars. Use a minus sign to indicate negative cash flows or decreases in cash, if required.

 

Cash Flow:

Year 0 __________

Year 1 __________

Year 2 __________

Year 3 __________

Year 4 __________

Year 5 __________

Year 6 __________

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Cash Flow:

Year 0 = -60

Year 1 =20.44

Year 2 =20.44

Year 3 =20.44

Year 4 =20.44

Year 5 =15.64

Year 6 =15.64

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