A pharmaceuticals company has accepted a project that is exp…
A pharmaceuticals company has accepted a project that is expected to increase revenues by $75,000 a year and cash expenses by $40,000 a year. The project will require the purchase of some new equipment that will increase depreciation expenses by $25,000 a year. Net working capital is also expected to increase by $4,000 annually. The firm is in the 21% marginal tax bracket. What is the change in operating cash flows?
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