At the end of a capital project the equipment has been fully depreciated and is sold for $30,000. Working capital in the amount of $10,000 is also no longer needed for the project and converted to cash. The company's tax rate is 40%. What is the total terminal cash flow for this project? A.22,000 B.8,000 C.28,000 D.40,000
At the end of a capital project the equipment has been fully depreciated and is sold for $30,000. Working capital in the amount of $10,000 is also no longer needed for the project and converted to cash. The company's tax rate is 40%. What is the total terminal cash flow for this project? A.22,000 B.8,000 C.28,000 D.40,000
Chapter10: Project Cash Flows And Risk
Section: Chapter Questions
Problem 6PROB
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At the end of a capital project the equipment has been fully
What is the total terminal cash flow for this project?
A.22,000
B.8,000
C.28,000
D.40,000
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