In the Fourth and Final Year of a Project,SVC Expects

question 110

Multiple Choice

In the fourth and final year of a project,SVC expects operating cash flow of $440,000.The project required an $80,000 investment in working capital at the beginning.Of that amount,$60,000 will be recovered in year 4.Machinery associated with the project will be sold for exactly its under appreciated value of $15,000.Total free cash flow for the fourth year is:

• A)$75,000.
• B)$1$500,000.
• C)$515,000.
• D)$535,000.

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