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    Evaluation of project proposal

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    You are in the finance department of a firm and you are evaluation a project proposal. You have the developed the following financial projections and you are calculating:

    a. The incremental cash flows of the project.
    b. The net present value of the project given a discount rate of 15%.

    The corporate tax rate is 34% and the financial projections are in thousands.

    year 0 year 1 year 2 year 3 year 4 year 5
    Sales revenue 10,000 10,000 10,000 10,000 10,000
    Operating costs 3,000 3,000 3,000 3,000 3,000
    Investment 17,500
    Depreciation 3,500 3,500 3,500 3,500 3,500
    Net working capital 300 350 400 300 200 0

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    https://brainmass.com/business/capital-budgeting/evaluation-project-proposal-168220

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    The corporate tax rate is 34% and the financial projections are in thousands.

    year 0 year 1 year 2 year 3 year 4 year 5
    Sales revenue 10,000 10,000 10,000 10,000 10,000
    Less Operating ...

    Solution Summary

    This shows the steps to evaluate a project proposal

    $2.19

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