What is ocf expected to in 2nd year of the project

Reference no: EM133432540

Question: John Wall Inc. is launching a line of "2" branded items in a 2-year project that involves equipment that will be purchased today for $150000, relevant annual sales of $200000, relevant annual costs of $40000, and a tax rate of 20%. What is OCF expected to in 2nd year of the project if MACRS depreciation is used where the depreciation rates in years 1, 2, 3, and 4 are 20%, 40%, 20%, and 10%, respectively?

Reference no: EM133432540

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