Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,350,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,470,000 in annual sales, with costs of $1,490,000. If the tax rate is 24 percent, what is the OCF for this project? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. OCF

Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,350,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,470,000 in annual sales, with costs of $1,490,000. If the tax rate is 24 percent, what is the OCF for this project? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. OCF

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Description: Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,350,000.The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will b

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 4P

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