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F0 42,000 Year 1 Year 2 Year 3 EBITDA 15,000 28,000 15,000 Depr 3 year % 0.3333 .4445 .1481 Depreciation Exp. 13,999 b e EBT

F0 42,000

Year 1

Year 2

Year 3

EBITDA

15,000

28,000

15,000

Depr 3 year %

0.3333

.4445

.1481

Depreciation Exp.

13,999

b

e

EBT

1,001

b

e

Tax

300

c

f

EAT

701

c

f

add depr back

13,999

d

g

OCF

14,700

d

g

Project A has a purchase price of $40,000, installation costs of $2,000 and expected EBITDA of $15,000 year 1, $28,000 year 2, $15,000 year 3. MACRS 3 year. It can be sold for 5,000 at the end of the project period. Calculate the OCF for Project A. a. What is the initial investment? Continue through with b, c... please

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