Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.44 million. The fixed asset will be depreciated straight- line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1,696,000 in annual sales, with costs of $659,000. If the tax rate is 23 percent, what is the OCF for this project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) OCF

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.44 million. The fixed asset will be depreciated straight- line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1,696,000 in annual sales, with costs of $659,000. If the tax rate is 23 percent, what is the OCF for this project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) OCF

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Description: Quad Enterprises is considering a new three-year expansion project that requires aninitial fixed asset investment of $2.44 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter11: Cash Flow Estimation And Risk Analysis

Section: Chapter Questions

Problem 8P: The Rodriguez Company is considering an average-risk investment in a mineral water spring project...

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