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Can someone help me with this question? Summer Tyme, Inc., is considering a new 2-year expansion project that requires an initial fixed asset investment of
Can someone help me with this question?
Summer Tyme, Inc., is considering a new 2-year expansion project that requires an initial fixed asset investment of $5, 670 million. The fixed asset will be depreciated straight-line to zero over its 2-year tax life, after which time it will be worthless. The project is estimated to generate $5, 040,000 in annual sales, with costs of $2, 016,000. If the tax rate is 33 percent, what is the OCF for this project? $126, 630 $2, 961, 630 $2, 813, 549 $3, 024,000 $3, 109, 712Step by Step Solution
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