What is the ocf for project

Assignment Help Finance Basics
Reference no: EM132444302

A company is considering a three-year project that requires an initial fixed asset investment of $1,800,000. The project will be depreciated straight-line to zero over its three year life. The salvage value is negligible. The annual sales and operating expenses are projected to be $1,500,000 and $800,000, respectively. The marginal tax rate for the company is 35%, what is the OCF for this project?

Reference no: EM132444302

Questions Cloud

Compare the pros and cons of 3g and 4g technology : Compare the pros and cons of 3G and 4G technology to determine the best uses of 3G and 4G technology in today's applications.
Analysis of complex projects : Describe some ideas for how you could go about calculating a discount rate if you weren't able to calculate a Beta. Share these with your classmates.
Compute the current yield on both bonds : a. Compute the current yield on both bonds. b. Which bond should she select based on your answer to part a?
Describe the hardware components within a computer : Describe the hardware components within a computer and explain their functions, including the motherboard, CPU, power supply, hard drive, RAM, video card).
What is the ocf for project : The salvage value is negligible. The annual sales and operating expenses are projected to be $1,500,000 and $800,000, respectively.
Describe the steps in information risks planning : There are several steps in Information Risks planning. How can you utilize these steps to create a "Security Data Policy for employees storing personal data.
Determining the initial investment in fixed assets : What is the initial investment in fixed assets assuming the marginal tax rate for General Food is 35%?
What is tannen comparing and contrasting in the essay : What is Tannen comparing and contrasting in this essay? Why does Tannen think understanding Is important?Identify at least two point of comparison.
Compute ending fifo inventory and cost of goods sold : Compute ending FIFO inventory and cost of goods sold. Assume $90,000 sales, beginning inventory 500 units @ $50, purchase of 400 units @$50; 100 units @$65

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd