What Is the Undiscounted Cash Flow in the Final Year

question 16

Multiple Choice

What is the undiscounted cash flow in the final year of an investment, assuming $10,000 after-tax cash flows from operations, $1,000 from the sale of a fully depreciated machine, $2,000 initial requirement for additional working capital, and a 35% tax rate?

• A) $8,450
• B) $12,600
• C) $12,650
• D)$14,000

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