Project A has a purchase price of $40,000, installation costs of $2,000 and expected EBITDA of $15,000 year 1, $28,000 year 2, $15,000 year 3. MACRS 3 year. It can be sold for 5,000 at the end of the project period. Calculate the OCF for Project A. a. What is the initial investment? Continue through with b CF0 42,000 Year 1 15,000 EBITDA Depr 3 year % Depreciation Exp. EBT Tax EAT add depr back OCF 0.3333 13,999 1,001 300 701 13,999 14,700 c, d, etc. Year 2 28,000 4445 b IC ld le g Year 3 15,000 1481 |h Im