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
Calculate arithmetic returns and risk-premium of stocks. Describe the stock market behavior. Calculate expected return, variance and standard deviation for individual stocks and po

Suppose the dividends for the Seger Corporation over the past six years were $1.36, $1.44, $1.53, $1.61, $1.71, and $1.76, respectively. Compute the expected share price at the end

As What is the major value of the weighted cost of capital calculation for the firm?k question #Minimum 100 words accepted#

DIFFERENTIATE BETWEEN ALLOCATIVE EFFICIENCY AND PRICING EFFICIENCY

YOU company has decided to acquire a piece of equipment and is consi or leasing the asset that you plan to use for 4 years. you have the following: Purchase price:$10million Deperc

You are a new member of the accounting team and have been asked to examine the accounts of Bellatrix and calculate appropriate ratios in order to evaluate the company's performance

The cost of capital for a firm can differ from the cost of capital for each of its businesses. When a firm has multiple businesses, it is important to use the cost of capital appro

Question: (a) Define foreign exchange rate risk and the three different type of exchange rate risks. Illustrate the three types of risks with examples. (b) Identify and ou

Question: (a) Discuss the concept of financial gearing and its implications for share price maximisation. (b) A firm has both, a current and a target debt-equity ratio of 0.