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H Cochran, Inc, is considering a new three-year expansion project that requires an initial fixed asset investment of $1,550,000. The fixed asset will be depreciated
H Cochran, Inc, is considering a new three-year expansion project that requires an initial fixed asset investment of $1,550,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life after which time it will be worthless. The project is estimated to generate S2.200,000 in annual sales, with costs of $1,100,000. If the tax rate is 35 percent, what is the OCF for this project? S 1,100,000 $ 583,333 $ 895,833 s 516,667
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