Depreciation =Initial Investment/Number of Years =2500000/3
=833,333.33
OCF =(Sales-Costs -Depreciation)*(1-Tax Rate)+Depreciation
=(2650000-1670000-833333.33)*(1-22%)+833333.33 =947733.33
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset...
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,500,000. 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 $2,650,000 in annual sales, with costs of $1,670,000. If the tax rate is 22 percent, what is the OCF for this project? (Do not round intermediate calculations and round your answer to 2...
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,650,000. 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 $2,830,000 in annual sales, with costs of $1,850,000. If the tax rate is 25 percent, what is the OCF for this project? (Do not round intermediate calculations and round your answer to 2...
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,300,000. 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 $2,650,000 in annual sales, with costs of $1,670,000. Assume the tax rate is 22 percent and the required return on the project is 12 percent. What is the project's NPV? (A negative answer...
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,300,000. 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 $2,650,000 in annual sales, with costs of $1,670,000. Assume the tax rate is 22 percent and the required return on the project is 12 percent. What is the project's NPV? (A negative answer...
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $3,000,000. 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 $3,250,000 in annual sales, with costs of $2,270,000. If the tax rate is 22 percent, what is the OCF for this project? (Do not round intermediate calculations and round your answer to 2 decimal...
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $3,000,000. 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 $3,250,000 in annual sales, with costs of $2,270,000. If the tax rate is 22 percent, what is the OCF for this project? (Do not round intermediate calculations and round your answer to 2...
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,300,000. 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 $2,410,000 in annual sales, with costs of $1,430,000. If the tax rate is 23 percent, what is the OCF for this project? (Do not round intermediate calculations and round your answer to 2...
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $3,000,000. 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 $3,250,000 in annual sales, with costs of $2,270,000. If the tax rate is 22 percent, what is the OCF for this project? (Do not round intermediate calculations and round your answer to 2 decimal...
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $3,000,000. 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 $3,250,000 in annual sales, with costs of $2,270,000. If the tax rate is 22 percent, what is the OCF for this project? (Do not round intermediate calculations and round your answer to 2...
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $3,150,000. 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 $3,430,000 in annual sales, with costs of $2,450,000. If the tax rate is 25 percent, what is the OCF for this project? (Do not round intermediate calculations and round your answer to 2...