What is the operating cash flow in year two

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Reference no: EM132047776

Your firm made an initial investment in R&D worth $1 million. And you are considering a investment in a three year project what requires an initial investment in fixed asset worth $2 million. The fixed asset falls in the MACRS three-year class. The project generates annual revenue of $1,500,000 and has annual costs of $600,000. Tax rate is 35%. The project requires an intial investment in working capital of $200,000. What is the Operating Cash Flow (OCF) in year 2?

Reference no: EM132047776

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