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

1. Motives - This section should include a detailed discussion of the main motives for the proposed acquisition supported by the latest academic literature and advances within the

Suppose GeKay Inc. has a two-year lease over a small copper deposit; the government acquires all rights to the property at the end of the lease.  It is known that the deposit conta

Suppose that Oxford Inc. is interested in the two new products, AME and CGK. Because of its capital budget constraint, it can only launch one new product line. Eric just graduated

McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $825 per set and have a variable cost of $395 per set. The company has spent $150,000 for a mar

Question: The District Cash Offices represents the decentralisation of services provided by the Accountant - General Department, specially in the collection and accounting of r

I need to know about corporate financial analysis

Question 1: (i) How do economists go about studying the economics of the public sector? Describe the four stages of analysis (ii) The level of government intervention dif

GeKay is now considering issuing $3 million in debt, and paying $150,000 yearly in interest at 5%, that it would keep rolling over "forever" (in perpetuity). The proceeds would

a) Describe the different types of exchange rate risks, using appropriate numerical examples. b) ‘Transaction exposure will equally be managed externally by a forward hedge or