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
What effect have mergers and acquisitions had on a customers access to branches? A: A branch closing which has resulted from a merger need not necessarily mean a lost relations

Do mergers encourage the formation of new banks? A: Yes. The rise in the number of new banks in the second half of the 1990s coincides with a surge in merger activity in the

Corporate restructuring Corporate restructuring entails any fundamental change in a company's business or financial structure, developed to raise the company's value to shareho

Initial investment outlay of $30 million, consisting of $25 million for equipment and $5 million for net working capital (NWC) (plastic substrate and ink inventory); NWC recoverabl

How competitive is the market for banking services? A: With more than 7,000 banks and thrifts in the U.S., banking is one of the most competitive industries in the world. Consi

determine the pay \back period for the project.

A leveraged recap, in which Midco would issue debt and use the proceeds to repurchase shares. A Midco industry has 20 million shares outstanding with market price of $15 per share

Part A Paris Co. Ltd has Equity Share Capital of Rs 500,000. To meet the expenditure of an expansion programme, the company wishes to raise Rs 300,000 and is having the given

Have mergers affected competition? A: Federal Reserve data show that measured on the local level, where competition takes place, markets have actually experienced more bank

Problem (a) The yields to maturity on five zero-coupon bonds are given below:                    Years to Maturity                 Yield (%)