ZuoTi.Pro
Question

Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset...

Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2279000. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will be worthless. The project is estimated to generate $2330000 in annual sales, with costs of $1645000. If the tax rate is 0.26 , what is the OCF for this project?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)

All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset...

    Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $4.698 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will be worthless. The project is estimated to generate $4,176,000 in annual sales, with costs of $1,670,400. Required: If the tax rate is 35 percent, what is the OCF for this project? rev: 09_18_2012 $2,176,740 $610,740 $2,505,600 $2,067,903 $2,285,577 Dog Up! Franks...

  • Summer Tyme, inc., is considering a new three year expansion project that requires an initial fixed...

    Summer Tyme, inc., is considering a new three year expansion project that requires an initial fixed asset investment of $3.9 million. The fixed asset will be depreciated straight line to zero over the life of the project, after which time it will be worthless. The project is estimated to generate $2650000 in annual sales, with costs of $840000 and a tax rate of 35 percent. The required return on the project is 12 percent. a) What is the operating cash...

  • P10-9 Calculating Project OCF (LO1] Summer Tyme, Inc., is considering a new 2-year expansion project that...

    P10-9 Calculating Project OCF (LO1] Summer Tyme, Inc., is considering a new 2-year expansion project that requires an initial fixed asset investment of $6.372 million. The fixed asset will be depreciated straight-line to zero over its 2-year tax life, after which time it will be worthless. The project is estimated to generate $5,664,000 in annual sales, with costs of $2,265,600. Required: If the tax rate is 33 percent, what is the OCF for this project?

  • Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset...

    Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $776,723. The fixed asset will be depreciated straight-line to 63,696 over its 3-year tax life, after which time it will have a market value of $105,666. The project requires an initial investment in net working capital of $75,981. The project is estimated to generate $257,580 in annual sales, with costs of $140,739. The tax rate is 0.32 and the required return on...

  • Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset...

    Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $871000. The fixed asset will be depreciated straight-line to 75000 over its 3-year tax life, after which time it will have a market value of $89000. The project requires an initial investment in net working capital of $48000. The project is estimated to generate $193000 in annual sales, with costs of $105000. The tax rate is 0.21 and the required return on...

  • Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset...

    Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $4.644 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $361,200. The project requires an initial investment in net working capital of $516,000. The project is estimated to generate $4,128,000 in annual sales, with costs of $1,651,200. The tax rate is 32 percent and the required...

  • Brisk inc., is considering a new 3-year expansion project that requires an initial fixed asset investment...

    Brisk inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $1,740,757. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will be worthless. The project is estimated to generate $2,205,200 in annual sales, with costs of $1,676,180. If the tax rate is 0.33 , what is the OCF for this project?

  • 1) Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of...

    1) Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,370,000. 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 $2,240,000 in annual sales, with costs of $1,230,000. Required: If the tax rate is 35 percent, what is the OCF for this project? (Do not round intermediate calculations. Enter your answer in dollars, not...

  • 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 $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?

  • 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 $2,200,000. 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 $2,290,000 in annual sales, with costs of $1,310,000. If the tax rate is 21 percent, what is the OCF for this project?

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT