Answered step by step
Verified Expert Solution
Question
1 Approved Answer
pls answer ASAP Hubrey Home Inc. is considering a new three-year expansion project that requires an initial fixed asset investment of $3.8 million. The fixed
pls answer ASAP Hubrey Home Inc. is considering a new three-year expansion project that requires an initial fixed asset investment of $3.8 million. The fixed asset falls into Class 10 for tax purposes (CCA rate of 30% per year). and at the end of the three years can be sold for a salvage value equal to its UCC. The project is estimated to generate $2,640,000 in annual sales, with costs of $835,000. If the tax rate is 35%, what is the OCF for each year of this project? (Enter the onswers in dollars. Do not round your intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started