Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on the following information, what is the relevant operating cash flow (OCF) associated with the project expected to be in year 3? The project

Based on the following information, what is the relevant operating cash flow (OCF) associated with the project expected to be in year 3? The project would require an initial investment in equipment of $170,000 that would be depreciated using MACRS where the depreciation rates in years 1, 2, 3, and 4 are 43%, 34%, 18%, and 5%, respectively. At the end of the project in 3 years, the equipment would be sold for an expected after-tax cash flow of $9,800. In year 3 of the project, relevant revenue associated with the project would be $167,000 and relevant costs associated with the project would be $124,000. The tax rate is 40 percent.

the answer is not 48920

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Construction Auditing Planning Implementation Use

Authors: Peter Wotschke, Gregor Kindermann

1st Edition

3658388404, 978-3658388409

More Books

Students also viewed these Accounting questions

Question

What is the relationship between humans?

Answered: 1 week ago

Question

What is the orientation toward time?

Answered: 1 week ago