Question: Continue From The Previous Question. Company ABC Is Considering A New 5-year Investment Into New Production Equipment That Requires Initial Investment € 5 Million. The Project Is Expected To Generate € 1,4 Million In Annual Sales, With Costs Of € 0,5 Million Per Year For Next 5 Years. ABC Uses The Straight-line Depreciation Over The 5 Years Of …
Question: Continue From The Previous Question. Company ABC Is Considering A New 5-year Investment Into New Production Equipment That Requires Initial Investment € 5 Million. The Project Is Expected To Generate € 1,4 Million In Annual Sales, With Costs Of € 0,5 Million Per Year For Next 5 Years. ABC Uses The Straight-line Depreciation Over The 5 Years Of …
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Continue from the previous question. Company ABC is considering a new 5-year investment into new production equipment that requires initial investment € 5 million. The project is expected to generate € 1,4 million in annual sales, with costs of € 0,5 million per year for next 5 years. ABC uses the straight-line depreciation over the 5 years of project life (book value assumed to be zero at the end of the project). If the tax rate is 35%. What is the annual operating cash flow of the project? Express your answer in millions of euros.
