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A firm is considering a new three-year expansion project that requires an initial fixed asset investment of $6.2 million. The fixed asset will be depreciated
A firm is considering a new three-year expansion project that requires an initial fixed asset investment of $6.2 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 $12.7 in annual sales, with costs of $9.6. If the tax rate is 21 percent, what is the OCF for this project in millions? Answer to three decimal places. e.g. 11.123
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