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Esfandairi Enterprises is considering a new three-year expansion project that requires all 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 $3,310,000 in annual sales, with costs of $2,330,000. If the tax rate is 23 percent, what is the OCF for this project? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. OCE

Esfandairi Enterprises is considering a new three-year expansion project that requires all 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 $3,310,000 in annual sales, with costs of $2,330,000. If the tax rate is 23 percent, what is the OCF for this project? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. OCE

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $3.0 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 $3,310,000 in annual sales, with costs of $2,330,000. If the tax rate is 23 percent, what is the OCF for this project? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. OCE
Transcribed Image Text:Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $3.0 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 $3,310,000 in annual sales, with costs of $2,330,000. If the tax rate is 23 percent, what is the OCF for this project? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. OCE
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