+1-415-670-9189
info@expertsmind.com
Depreciated straight-line to zero over three-year tax life
Course:- Financial Management
Reference No.:- EM13882244





Assignment Help >> Financial Management

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.97 million. 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 $2,170,000 in annual sales, with costs of $865,000. If the tax rate is 35 percent, what is the OCF for this project?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Financial Management) Materials
Science Co. manufactures industrial products and employs a calendar year for financial reporting purposes. Items (a) through (e) present several of Science Co. transactions du
Suppose you borrow at the risk-free rate an amount equal to your initial wealth and invest in a portfolio with an expected return of 16% and a standard deviation of returns of
Kennedy Air Services is now in the final year of a project. The equipment originally cost $30 million, of which 90% has been depreciated. Kennedy can sell the used equipment t
McGilla Golf is evaluating a new golf club. The clubs will sell for $770 per set and have a variable cost of $370 per set. The company has spent $147,000 for a marketing study
Amalagmated Mining has very high operating leverage due to the capital intensisve nature of the steel business. The firms CEO is concerned about the variability in the firms E
For the next 14 years, you decide to place $4,762 in equal year-end deposits into a savings account earning 3.28 percent per year. How much money will be in the account at the
Suppose you enter into a loan agreement to borrow $100,000 to help finance the purchase of a new home. The loan contract specifies a term of 30 years with monthly payments det
Daniel believes that a chemical company is responsible for contaminating some land that he owns. He files suit against the chemical company. Rather than have the case go to