iven the following project information, calculate the after-tax operating cash flow (ATOCF) using the four approaches of calculating operating cash flow. Project cost = $950,000 Project life = five years Projected number of units sold per year = 10,000 Projected price per unit = $200 Projected variable cost per unit = 150 Fixed costs per year = $150,000 Required rate of return = 15% Marginal tax rate = 35% Depreciation = Straight-line to zero over five years (ignore half-year rule)

iven the following project information, calculate the after-tax operating cash flow (ATOCF) using the four approaches of calculating operating cash flow. Project cost = $950,000 Project life = five years Projected number of units sold per year = 10,000 Projected price per unit = $200 Projected variable cost per unit = 150 Fixed costs per year = $150,000 Required rate of return = 15% Marginal tax rate = 35% Depreciation = Straight-line to zero over five years (ignore half-year rule)

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 12PROB

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