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Business, 28.11.2019 05:31 jtamika31

You are a part of a finance team in a firm, and you were asked by your boss to estimate the annual cash flows of a project. you estimated that the annual sales and costs of this project is $150,000 and $25,000 respectively. in order to start the project, the firm needs to invest in $300,000 in new equipment including shipping and installation, and $30,000 in working capital. the life of this asset is 3 years, and the project will be terminated after 3 years of operations. the equipmetn will depreciate via simplified straight-line method, and the estimated market value of the machine in 3 years is $20,000. the firm has a marginal tax rate of 22%. what is the terminal cash flow of this project? round to the nearest penny. do not include a dollar sign in your answer.

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