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Seachel plc is considering a new 3-year expansion project that requires an initial fixed asset investment of 1.5m. The fixed asset would be depreciated straightline
Seachel plc is considering a new 3-year expansion project that requires an initial fixed asset investment of 1.5m. The fixed asset would be depreciated straightline to zero over its three-year tax life after which time it will be worthless. In year 1 the project is estimated to generate 1,075,000 in annual sales with costs of 600,000. Thereafter the project's costs and sales are expected to grow at a rate of 10% per annum. If the tax rate is 20%, what are the operating cash flows (OCF) for this project
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