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ColeCola Corporation is considering a new three years expansion project which will require an initial investment on fixed assets of RM3.5 million. Initial investment in

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ColeCola Corporation is considering a new three years expansion project which will require an initial investment on fixed assets of RM3.5 million. Initial investment in net working capital is RM300,000 and the fixed assets will have a market value of RM210,000. The fixed asstes will be depreciated straight line to zero over its three-year to generate RM2.1 million in annual sales, with costs of RM550,000. What is the OCF for this project if the tax rate is 20% ? Suppose the machines falls under three-year MACRS class. What is the project's Year 1, 2, and 3 cash flow? What is the new NPV? ColeCola Corporation is considering a new three years expansion project which will require an initial investment on fixed assets of RM3.5 million. Initial investment in net working capital is RM300,000 and the fixed assets will have a market value of RM210,000. The fixed asstes will be depreciated straight line to zero over its three-year to generate RM2.1 million in annual sales, with costs of RM550,000. What is the OCF for this project if the tax rate is 20% ? Suppose the machines falls under three-year MACRS class. What is the project's Year 1, 2, and 3 cash flow? What is the new NPV

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