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What is the ocf for year of project

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Reference no: EM133234332

Evong homes INC is considering a new three-year-old project, that requires an initial fixed asset investment of 2.7 million dollars.

The fixed asset falls into class 8 for tax purposes. CCA rate of 20% per year and the end of three years can be sold for a salvage value equal to its UCC.

The project is estimated to generate 1,730,000 in annual sales with the cost of 764,000 dollars, if tax rate is 25% what is the OCF for each year of this project?

Reference no: EM133234332

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