Question

An investment project is expected to
generate earnings before taxes (EBT)
ofRs. 60,000 per year. Annual
depreciation from the project is Rs.
30,000 and thefirms' tax rate is 40%. The
project annual net cash flows are​

Answer 1

Answer:

project (EBT) = Rs 60,000. per year

use. = Rs 30,000 in film

= Rs 60,000-30,000

= Rs 30,000

tex = 40%

solve =Rs 30,000-40%

=Rs 18,000

this answer is Rs 18,000.

net flows are is Rs 18,000