Depreciation = 3,150,000 / 3 = 1,050,000
OCF = (Sales - costs - depreciation)(1 - tax) + depreciation
OCF = (3,430,000 - 2,450,000 - 1,050,000)(1 - 0.25) + 1,050,000
OCF = -52,500 + 1,050,000
OCF = $997,500
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of...
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,450,000. 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 $2,590,000 in annual sales, with costs of $1,610,000. If the tax rate is 21 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 $2,450,000. 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 $2,590,000 in annual sales, with costs of $1,610,000. If the tax rate is 21 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 $2,450,000. 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 $2,590,000 in annual sales, with costs of $1,610,000. If the tax rate is 21 percent, what is the OCF for this project? (Do not round intermediate calculations and round your answer to...
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,480,000. 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. Assume the tax rate is 25 percent and the required return on the project is 9 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 $2,480,000. 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. Assume the tax rate is 25 percent and the required return on the project is 9 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 $2,550,000. 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 $2,710,000 in annual sales, with costs of $1,730,000. 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 $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 $2,300,000. 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 $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...