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In: Finance

Suppose you want to find the nonoperating cash flow in the last year of the project....

Suppose you want to find the nonoperating cash flow in the last year of the project. This includes the effects associated with the salvage value,cleanup and removal expenses, and working capital. The variables and values are: cash received on sale of old equipment (S) = $20,000; tax rate (T) = 0.4; book value of old equipment (B) = 5,000; before-tax cleanup and removal expenses (REX) = $15,000; and, release of net working (W) = $5,000.

What is the nonoperating cash flow in the last year of the project?

Group of answer choices

$11,000

$12,000

$10,000

$13,000

Solutions

Expert Solution

jeff jeffy answered 5 months ago
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