Fieldgard Inc

question 91

Essay

Fieldgard Inc. invested $800,000 in a project nine years ago. This project has generated $320,000 cash revenues per year and incurred $250,000 cash operating costs each year. The project qualified as 7-year property under MACRS (modified accelerated cost recovery system). Salvage value of this project (at the end of the tenth, and final, year of the project's life) is expected to be $200,000. The project required $80,000 net additional working capital at its inception and another $60,000 at the end of year 5. The combined increased working capital commitment is expected to be fully recoverable when the project terminates. The company is subject to a combined 40% income tax rate, t.
Required:
What is the expected total after-tax cash flow expected from this project next year (i.e., during the 10th and final year of the project's life)? Round answer to nearest whole number.

---

Definitions:

Formalizing Goals

The process of defining and establishing clear, measurable, and time-bound objectives to guide actions and measure accomplishments.

Work/Life Priorities

The balance or prioritization between professional obligations and personal life activities, aiming to achieve fulfillment and well-being in both areas.

Goal Setting

The practice of setting specific, measurable, achievable, relevant, and time-bound objectives.

Balance and Perspective

Maintaining a healthy equilibrium in various aspects of life or work while considering different viewpoints or aspects of a situation.