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What is the ocf for each year of the project

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Question: Hubrey Home Inc. is considering a new three-year expansion project that requires an initial fixed asset investment of $4.2 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 $2,680,000 in annual sales, with costs of $849,000. If the tax rate is 35%, what is the OCF for each year of this project?

Reference no: EM132760178

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