What is the ocf per year

Assignment Help Financial Accounting
Reference no: EM133078244

Question - A project requires an investment of $100,000 in equipment that has a five-year life. The equipment has no salvage value at the end of five years and will be depreciated on a straight-line basis. The required return is 15% and the tax rate is 34%. Assuming unit sales are 2,200 units, selling price is $60 per unit, variable costs are $21 per unit and fixed costs are $9,500, what is the OCF per year?

a. $76,300

b. $85,820

c. $65,426

d. $57,158

e. $50,358

Reference no: EM133078244

Questions Cloud

People protesting company employment practices : A group of people protesting a company's employment practices in the lobby of a building is surrounded by private security guards hired by the company.
Discuss the opinion given and who conducted audit : Locate the Auditor's Report in the latest annual report, and discuss the opinion given and who conducted the audit.
Prepare the journal entry to correct the error : If no adjusting entry is made in 2020, and the error is detected in 2021, prepare the journal entry to correct the error assuming the books have been closed
Compute the consolidated gain or loss : On 1/1/2019, Allie Company issued bonds payable of $500,000 at 8%. Compute the consolidated gain or loss on a consolidated income statement
What is the ocf per year : Assuming unit sales are 2,200 units, selling price is $60 per unit, variable costs are $21 per unit and fixed costs are $9,500, what is the OCF per year
What is the anticipated duration and overall budget : What is the anticipated duration and overall budget for the project and What resources and project team will you need
Prepare the journal entries to record issuance of the bonds : XYZ Company issued $500,000 of 10%, 20-year bonds on January 1, 2020, at 102. Prepare the journal entries to record issuance of the bonds
Negligence and product liability : Consider the scenarios below. Choose one and determine if it describes negligence or product liability. E
Prepare the necessary journal entry by cowboy company : Gold's machine had an original cost of $80,000, accumulated depreciation to date of $14,500, Prepare the necessary journal entry by Cowboy Company

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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