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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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