Logan Hunting has a proposed project that will generate sales of 2,200 units annually at a selling price of $29.95 each. The fixed costs are $15,000 and the variable costs per unit are $6.95. The project requires $42,000 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the four-year life of the project. The salvage value of the fixed assets is $5,500 and the tax rate is 21 percent. What is the operating cash flow for Year 4? Can the calculator and excel solution be provided?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter19: Lease And Intermediate-term Financing
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Logan Hunting has a proposed project that will generate sales of 2,200 units annually at a selling price of $29.95 each. The fixed costs are $15,000 and the variable costs per unit are $6.95. The project requires $42,000 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the four-year life of the project. The salvage value of the fixed assets is $5,500 and the tax rate is 21 percent. What is the operating cash flow for Year 4?

Can the calculator and excel solution be provided?

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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