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preciated straight-line to zero over its three-year tax life, after which time be worthless. The project is estimated to generate $1,651,000 in annual with costs of $629,000. If the tax rate is 23 percent, what is the OCF for roject? (Do not round intermediate calculations and enter your answer

preciated straight-line to zero over its three-year tax life, after which time be worthless. The project is estimated to generate $1,651,000 in annual with costs of $629,000. If the tax rate is 23 percent, what is the OCF for roject? (Do not round intermediate calculations and enter your answer

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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Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.29 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 $1,651,000 in annual sales, with costs of $629,000. 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
Transcribed Image Text:Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.29 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 $1,651,000 in annual sales, with costs of $629,000. 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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