Stu is working on a bid for a contract.Thus far,he has determined that he will need $218,000 for fixed assets and another $41,000 for net working capital at Time 0.He has also determined that he can recover $79,900 aftertax for the combined fixed assets and net working capital at the end of the 3-year project.What operating cash flow will be required each year for the project to return 14 percent in nominal terms?
A)$116,079.42
B)$97,487.79
C)$110,220.48
D)$88,330.01
E)$113,360.69

Question

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The Answer of Stu is working on a bid for a contract.Thus far,he has determined that he will need $218,000 for fixed assets and another $41,000 for net working capital at Time 0.He has also determined that he can recover $79,900 aftertax for the combined fixed assets and net working capital at the end of the 3-year project.What operating cash flow will be required each year for the project to return 14 percent in nominal terms?
A)$116,079.42
B)$97,487.79
C)$110,220.48
D)$88,330.01
E)$113,360.69

Stu Is Working on a Bid for a Contract