Question

Problem 11-1

A project that is expected to last six years will generate incremental profit and cash flow before taxes and depreciation of $23,000 per year. It requires the initial purchase of equipment costing $60,000, which will be depreciated over four years. The relevant tax rate is 28%. Calculate the project's cash flows. Enter your answers in thousands. For example, an answer of $1 thousand should be entered as 1, not 1,000. Round your intermediate calculations and final answer to the nearest thousand dollars. Use a minus sign to indicate negative cash flows or decreases in cash, if required.

Year	Cash Flow ($000)
0	$
1	$
2	$
3	$
4	$
5	$
6	$

Answer 1