What is operating cash flow for this project

Assignment Help Financial Management

Reference no: EM131496984

Quint Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.58 million. The fixed asset is classified for taxes under the 3-year MACRS schedule. For accounting, it will be depreciated straight-line to zero over the 3-year project life. At the end of the project, the fixed asset will be worthless. The project is estimated to generate $2,040,000 in annual sales and annual costs of $735,000. If the tax rate is 34 percent, what is the Operating Cash Flow for this project? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.89.)

Reference no: EM131496984

Questions Cloud

How long will you wait from now : You expect to receive $27,000 at graduation in two years. How long will you wait from now?

Arbitrage opportunities in the foreign exchange markets : Did you ever find any arbitrage opportunities in the foreign exchange markets?

Requires an initial fixed asset investment : Keiper, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.7 million.

What is the bonds current yield : What is the bond’s current yield? What is the bond’s YTM?

What is operating cash flow for this project : Quint Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.58 million.

What is the yield today for two year treasury securities : If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? Calculate the yield using a geometric average.

What is the yield on one year t-bonds one year from now : Today, interest rates on 1-year T-bonds yield 1.8%, interest rates on 2-year T-bonds yield 2.1%, what is the yield on 1-year T-bonds one year from now?

Explanation of the three theories that you relate to most : Explanation of the three theories that you relate to most. Include the associated theorists and Description of the similarities and differences

Balance of trade is a favourable surplus : Evaluation of the country's performance based on its 5-year net - Examination of the relationship of actual 5-year net export figure vis-à-vis the GDP data for the same period

User Account

All Pages