Question
what are operating cash flows for year 1,2 and3 Hubrey Home is considering a new three- year expansion project that requires an initial fixed asset
what are operating cash flows for year 1,2 and3
Hubrey Home is considering a new three- year expansion project that requires an initial fixed asset investment of $3.7 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 $2630000 in annual sales, with costs of $832000. If the tax rate is 35%, what is the OCF for each year of this project? Do not round intermediate calculations.Round the final answwr to 2 decimal places. OCF for 1 year? OCF for 2 year? OCF for 3 year?
Hubrey Home Inc. is considering a new three-year expansion project that requires an ini fixed asset falls into Class 10 for tax purposes (CCA rate of 30% per year), and at the end value equal to its UCC. The project is estimated to generate $2,630,000 in annual sales, what is the OCF for each year of this project? (Enter the answers in dollars. Do not rour final answers to 2 decimal places. Omit $ sign in your response.)Step by Step Solution
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