antariusjones2901 antariusjones2901

02-12-2022
Business

Answered

Esfandairi enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2. 18 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1. 645 million in annual sales, with costs of $610,000. If the tax rate is 21 percent, what is the ocf for this project?.

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