Cash Flow Net of Income Taxes Assignment
February 18th, 2020
Coache Corporation is considering a capital budgeting project that would require an investment of $230,000 in equipment with a 4-year useful life and zero salvage value.
The annual incremental sales would be $650,000 and the annual incremental cash operating expenses would be $450,000. In addition, there would be a one-time renovation expense in year 3 of $30,000. The company’s income tax rate is 30%. The company uses straight-line depreciation on all equipment.
The total cash flow net of income taxes in year 3 is: .