Question
Please show your work...I have to show all work. Thanks! Calculating Project OCF. H. Cochran, Inc., is considering a new three-year expansion project that requires
Please show your work...I have to show all work. Thanks!
Calculating Project OCF.
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $1,950,000. 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 $2,145,000 in annual sales, with costs of $1,205,000. If the tax rate is 35 percent, what is the OCF for this project.
Please show all work and how you come up with the OCF. Thank You!!
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