AD Technologies is considering a replacement project that will annually generate additional revenues of $950,000. The project has fixed and variable costs totalling $570,000. It will increase depreciation costs by $250,000. The firm has a marginal tax rate of 30%. What is the projected operating cash flow (OCF) for this replacement project?

AD Technologies is considering a replacement project that will annually generate additional revenues of $950,000. The project has fixed and variable costs totalling $570,000. It will increase depreciation costs by $250,000. The firm has a marginal tax rate of 30%. What is the projected operating cash flow (OCF) for this replacement project?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...

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