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In a project, sales of NOK 200 million are budgeted for in 2022 and 2023

Finance

In a project, sales of NOK 200 million are budgeted for in 2022 and 2023. Variable
costs account for 60% of sales, while fixed costs amount to NOK 30 million. Plus
depreciation of NOK 35 million is expected. Working capital is 10% of the next
years of sales. In connection with the project, the starting point is a target debt ratio of 1.5.
The company can borrow at 5% interest.
The company is in a tax position and pays 22% tax. It is assumed that in 2021 280 will be invested
million kroner, while in 2022 35 million kroner will be invested. The project gives positive
ripple effects in another department in 2022 corresponding to NOK 15 million.

What will be the cash flow to total capital in 2021 and 2022?

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