What is the OCF for each year of this 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 $3.9 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 $2,650,000 in annual sales, with costs of $840,000. If the tax rate is 35%, what is the OCF for each year of this project? Calculating Project NPV In the previous problem, supposed the required return on the project is 12%. What is the project's NPV?

Reference no: EM133018545

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