Week 6 Financial Mgmt 3 - Therefore: 25 million in sales-18...

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Here is what I found. Class please correct me if I am wrong… According to our text: Initial investments include fixed assets plus initial investment Annual project cash flows: -depreciation is added because it is a non-cash expense -financing/interest is not subtracted because they are discounted at cost of capital.
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Unformatted text preview: Therefore: 25 million in sales-18 million in operating costs +5 million depreciation = 12 million in taxable income.-40% tax Total operating cash flows = 7.2 million...
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This note was uploaded on 03/26/2012 for the course F1515 F1515 taught by Professor Stan during the Spring '10 term at Keller Graduate School of Management.

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