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Raph Inc. needs someone to supply it with 1 , 0 0 0 , 0 0 0 planks of wood per year to support its
Raph Inc. needs someone to supply it with planks of wood per year to support its manufacturing needs over the next six years, and your company has decided to bid on the contract. It will cost your firm $ to install the equipment necessary to start production. The equipment will be depreciated using the straightline method to over the project's life. The salvage value of the equipment is expected to be Your fixed costs will be $ annually, and your variable production costs are $ per plank. You also need an initial investment in net working capital of $ which will be recovered at the end of the project. The firm has a tax rate of and the required rate of return is
Based on the bid price, calculate the OCF for year Round to decimals
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