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Title: Temporary Housing Services Incorporated (THSI) is considering a project that involves setting up a ... Post by: gorgeous on Jul 7, 2019 Use the information for the question(s) below.
Temporary Housing Services Incorporated (THSI) is considering a project that involves setting up a temporary housing facility in an area recently damaged by a hurricane. THSI will lease space in this facility to various agencies and groups providing relief services to the area. THSI estimates that this project will initially cost $5 million to set up and will generate $20 million in revenues during its first and only year in operation (paid in one year). Operating expenses are expected to total $12 million during this year and depreciation expense will be another $3 million. THSI will require no working capital for this investment. THSI's marginal tax rate is 35%. Ignoring the original investment of $5 million, what is THSI's free cash flow for the first and only year of operation? ▸ $8.0 million ▸ $3.75 million ▸ $6.25 million ▸ $5.0 million Title: Temporary Housing Services Incorporated (THSI) is considering a project that involves setting up a ... Post by: sliceofoctopi on Jul 7, 2019 Content hidden
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