Question
Outfit of a new Fed-Ex duplicating facility in the United States: Facility construction: $15M NWC: $1M Anticipated sales: $14M / year COGS: $8M / year
Outfit of a new Fed-Ex duplicating facility in the United States:
Facility construction: $15M
NWC: $1M
Anticipated sales: $14M / year
COGS: $8M / year
Fixed operating expenses: $2M / year
Project lifespan: 5 years
Salvage Value at end-of-life: $2M
Marginal tax rate: 35%
WACC: 10%
What is the operating cash flow for year 1 (OCF1)?
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Fundamental Accounting Principles
Authors: Larson Kermit, Tilly Jensen
Volume I, 14th Canadian Edition
71051503, 978-1259066511, 1259066517, 978-0071051507
