"The revenue for a project in year 8 is $38,000 in constant (year-0) dollars. Expenses (not...

"The revenue for a project in year 8 is $38,000 in constant (year-0) dollars. Expenses (not including depreciation) in the same year is $22,000 in constant (year-0) dollars. Depreciation in that same year is $7675. If there were no inflation, the net income for year 8 would be $5078 in constant (year-0) dollars. If the inflation rate is 3%, what is the net cash flow in year 8 in actual dollars? Assume there are no investments or salvage values in this year. Hint: you will need to calculate the tax rate. The answer could be a negative number."

Expert Solution

Rahul Sunny answered 2 years ago

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2/ impact in the equity of revenue and expenses

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