Share
Explore BrainMass

Computing the cash flow given the following information

The initial investment outlay of $20 million for equipment only. Projects and equipment life is 5 years. Sales is projected to be $12 million per years for 5 years. Assume gross margin of 50% (exclusive depreciation). Depreciation for tax purposes, selling general and administrative expenses 10% of sales, tax rate of 35% for Apex Printing, Inc.

Solution Preview

Please see the attached file for the full solution. Thank you for asking BrainMass.

Initial investment outlay of $20 million for equipment only, projects and equipment life 5years. sales projected to be $12 million per years for 5years. assume gross margin of 50% (exclusive depreciation) Depreciation for tax purposes, selling general and administrative ...

Solution Summary

The after-tax cash flow is calculated for a project.

$2.19