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Abhay Communications is looking to invest in a new website which will require an investment of $1,400,000. The asset will be depreciated to zero over
Abhay Communications is looking to invest in a new website which will require an investment of $1,400,000. The asset will be depreciated to zero over it's 3 year life using the straight line method. After that it will be worthless (has no salvage value). The management team feels that the updated website will result in an additional $860,000 in sales each year with annual operating cost of $340,000. The tax rate is 25% and the discount rate is 13%. This is a three year project. Fill in the following information. Cash Flow at time 0 = Develop operating cash flow. Label the row and fill in the value Sales Earnings before Tax (EBT) Tax + depreciation Operating Cash Flow (OCF) Show values entered in calculator CFO C01 F01 1 NPV accept or reject project
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