Calculating project OCF, Corporate Finance

Nipissing, Inc,, is considering a new three year expansion project that requires an initial fixed asset investment of $2.4 million. The fixed asset falls in CCA Class 8 with a a 20 percent rate for tax purposes. When the project is completed, the fixed asset will be worthless, and Nipssing will have other assets remaining in that CCA class. The project is estiated to generate $2,550,000 in annual sales , with costs of $1,180,000. If the tax rate is 35 percent, what is the OCF for each year of this project?
Posted Date: 4/8/2013 7:24:19 PM | Location : Canada

Related Discussions:- Calculating project OCF, Assignment Help, Ask Question on Calculating project OCF, Get Answer, Expert's Help, Calculating project OCF Discussions

Write discussion on Calculating project OCF
Your posts are moderated
Related Questions
A firm announces its intent to undertake a levered recapitalization, issuing debt to repurchase a fraction of the outstanding common stock. Upon the announcement, its stock price

S5 Corporation is evaluating an extra dividend versus a share repurchase.  In either case, the total payout to the investors will be $10,000. Current earnings are $1 per share and

Robert Shapprio Leasing CO (40% tax rate) I determining leae rate for a number of equipment . it is allowed to use the following accelerated depreciation rate 3 years: 25%   38%

WACC calculation

Question : (a) Electronic banking can be defined as "the automated delivery of new and traditional banking products and services directly to customers through electronic, int

hey i need help creating a balance scorecard how long will that take >>?

On December 31, 2009, the Real Weapons Factory reported total stockholders' equity of $447,200. On that date, total contributed capital was $360,000. During 2009, the firm had tota

Question 1: Compare and contrast the Capital Asset Pricing Model with that of the Arbitrage Pricing Theory. Question 2: (a) Explain the concept of stock market efficien