What is the ocf for this project

Assignment Help Finance Basics
Reference no: EM13271946

Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,340,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,230,000 in annual sales, with costs of $1,220,000.

If the tax rate is 40 percent, what is the OCF for this project?

 

Reference no: EM13271946

Questions Cloud

Calculate the weight of a hanging object : An aluninum wire has a length of 8 m and a cross-sectional radius of 0.004 m. Calculate the weight of a hanging object
What is the projected dividend for the coming year : The required return on this stock is 12 percent, and the stock currently sells for $80 per share. What is the projected dividend for the coming year?
Find the diameter of the central bright spot on the moon : A spotlight sends red light (wavelength = 694.3 nm) to the moon. At the surface of the moon, which is 3.77 multiply.gif 108 m away, Determine the diameter (not the radius) of the central bright spot on the moon
Determine the work done by the bat on the ball : A pitched baseball of mass .200kg, arives at home plate with a speed of 40m/s and is batted straight back to the picture, determine the work done by the bat on the ball
What is the ocf for this project : If the tax rate is 40 percent, what is the OCF for this project?
What will be the diameter of your coil : You have a 2.5m long copper wire. You want to make an N-turn current loop that generates a 1.2mT magnetic field at the center when the current is 1.9A, What will be the diameter of your coil
Explain when a mixture of acetylene and oxygen is ignited : When a mixture of 12.5g of acetylene (C2H2) and 12.5g of oxygen (O2) is ignited, the resultant combustion reaction produces CO2 and H2O
what discount rate should be used to discount : a. What discount rate should be used to discount the estimated cash flow? (Hint: Use Columbia's cost of equity to determine the market risk premium.) b. What is the dollar value of HCA to Columbia's shareholders?
What current is needed in the solenoids wires : A researcher would like to perform an experiment in a zero magnetic field, which means that the field of the earth must be cancelled. What current is needed in the solenoid's wires

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the simple interest on investment

Calculate the simple interest on a $9,212 investment made for five years at an interest rate of 6.5 percent per year.

  Npv based question

Suppose you have an opportunity to invest in a business that will pay $200,000 in one year, $400,000 in two years, $600,000 in three years and $800,000 in four years.

  Calculate wacc after tax

Capital Co. has a capital structure, based on current market values, that consists of 34 percent debt, 12 percent preferred stock, and 54 percent common stock.  Calculate WACC after tax in percent.

  What is the best estimate of tapleys simple interest rate

Assuming that interest rates in the general economy are expected to re main at their current level, what is the best estimate of Tapley's simple interest rate onnew bonds?

  Organization exchange lists the stock

What exchange lists the stock? Why did the company decide to list on that exchange.

  Present value of a perpetuity

Calculate how much money she could take out each year and

  Explain why you would need to consider reliability and valid

Explain why you would need to consider reliability and validity when conducting business research.Information about accessing the Blackboard Grading Rubric for this assignment is provided below.

  Implementation of plant

The VP of finance of the ACME Corporation has developed a financial plan that will alleviate some of the cash flow problems that the Corporation has incurred in the past year.

  How long will it take for her funds to triple

Janice has $5000 invested in a bank that pays 8.8% annually. How long will it take for her funds to triple?

  Calculate total marketable and nonmarketable debt

Assume the public debt of the United States consisted of following types of security issues [all figures in billions of dollars]: Calculate total marketable and nonmarketable debt

  Prepare a 20x8 consolidated income statement

Assume that Go-med is a joint venture owned by Insure and four other venturers, that the acquisition differentials are valid, and that it has not yet adopted IFRS 11: Joint Arrangements.  Prepare a 20X8 consolidated income statement for Insure using ..

  Objective type questions on bond valuation and us treasury

Objective type questions on bond valuation and US Treasury bills and which of the following lists correctly ranks investments from highest to lowest returns and risk

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