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A fixed asset for a 3-year project costs $1,800 and is classified as a 3-year asset under MACKS; its salvage value will be $300 at the end of the project. Each year the project i expected to generate $1,920 in sales and $980 in cost of goods sold. The project require an investment of $250 in net working capital which will be recovered at the end of the at the end of the project. The tax rate is 30%. The firm has other profitable opportunities sufficient to cover losses. Find the cash flow from assets in the last year of the project.

Financial Management, Finance

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