Fort requires equipment costing $320,000. It is a 9-year project, and is depreciated straight line over its life. It will will generate sales of $189,000 annually with costs of $93,500. Both the sales and costs are accurate to +/-15 percent. What is the annual OCF for the worst-case scenario if the tax rate is 40 percent?
Fort requires equipment costing $320,000. It is a 9-year project, and is depreciated straight line over its life. It will will generate sales of $189,000 annually with costs of $93,500. Both the sales and costs are accurate to +/-15 percent. What is the annual OCF for the worst-case scenario if the tax rate is 40 percent?
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 5P
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Fort requires equipment costing $320,000. It is a 9-year project, and is
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