Homework Questions

According to the Census Bureau, in October 2016, the average house price in the United States was $28,358. 7 years earlier, the average price was $21,908. What was the annual increase in the price of the average house sold? 4.13% 376% 4.51% 3.38% Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $1.296 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will be worthless. The project is estimated to generate $1,152,000 in annual sales, with costs of $460,800. If the tax rate is 22 percent, what is the OCF for this project? Multiple Choice $634,176 $665,885 $691200 ( S602,467 $202176