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how do i get the year 1 OCF? Used Window Time - Reference Trg - Functions Funchon ubrary Manager Create From Selection Defined Nannes Remove
how do i get the year 1 OCF?
Used Window Time - Reference Trg - Functions Funchon ubrary Manager Create From Selection Defined Nannes Remove Arrows-Evaluate Formula Torn Auditing ca -0.39/0.61 D G TABLE4 You are considering a new product launch Equipment for the project will cost $875,000 The project will have a four year life, and have no salvage value Depreciation is straight line to zero over the four years The required return on the project is 11%, and the tax rate is 35% Projected annual sales and cost figures are shown below (sales and costs are estimated to be identical for each year 1-4) Based on the information given, calculate OCF and NPV Equipment cost $875.000 Project length (years) Required return 11% Tax rate 35% 4 $3,948,000 $2,869,000 $345,000 Annual Sales Annual Variable costs Annual Fixed costs Annual Depreciation Annual EBIT Annual Taxes Annual OCF Cash flows YEAR 0 1 2 3 4 "you MUST use NPV function in excel PROJECT NPV Step by Step Solution
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