Calculating project OCF, Corporate Finance

Assignment Help:
Nipissing, Inc,, is considering a new three year expansion project that requires an initial fixed asset investment of $2.4 million. The fixed asset falls in CCA Class 8 with a a 20 percent rate for tax purposes. When the project is completed, the fixed asset will be worthless, and Nipssing will have other assets remaining in that CCA class. The project is estiated to generate $2,550,000 in annual sales , with costs of $1,180,000. If the tax rate is 35 percent, what is the OCF for each year of this project?

Related Discussions:- Calculating project OCF

Explain the negotiation of letter of credit in trade finance, Judges Maurit...

Judges Mauritius Co Ltd imports spare parts for cars from Dubai on a letter of credit basis, payable 60 days from ‘bill of lading' issue date. Each letter of credit is valid for 90

Estimate the sufficient taxable income, L has business assets worth $8 mill...

L has business assets worth $8 million and NOL carryovers of $1 million expiring in 14 years and of $2 million expiring in 15 years. 100% of L's stock is worth $10 million. The l

Illustrate the essential requisites of a promissory note, A promissory note...

A promissory note is an instrument in writing (not being a blank or a currency note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money onl

How garch modelling is related to hedging, Question: σ 2 t = β 0 + ...

Question: σ 2 t = β 0 + β 1 σ 2 t - 1 + λ 1 ε 2 t -1 (a) Interpret parameter 1 and 1 in model (1) and derive the long-term unconditional variance. (b) What

RISK, Calculate arithmetic returns and risk-premium of stocks. Describe the...

Calculate arithmetic returns and risk-premium of stocks. Describe the stock market behavior. Calculate expected return, variance and standard deviation for individual stocks and po

Standard deviations and correlations, Suppose you are given the expected ye...

Suppose you are given the expected yearly returns and standard deviations and correlations shown in the tables below: The market portfolio has an expected return of 18% and

WACC, CivilENG, LTD has a target capital structure of 35% debt and the rema...

CivilENG, LTD has a target capital structure of 35% debt and the remainder common equity. CivilENG’s cost of debt on the first $3 million borrowed is 7.5%, but that cost of debt in

What is the hirfindahl-hirschman index, What is the Hirfindahl-Hirschman I...

What is the Hirfindahl-Hirschman Index ? A: The Hirfindahl-Hirschman Index, or HHI, is the standard measure used by economists to evaluate market concentration. The greater th

Project, I have a Finance project due and I was wondering if I could get so...

I have a Finance project due and I was wondering if I could get some help with it? Please advise. Thanks..

Establishing the scale and cost of phoenix activity, Q. Establishing the sc...

Q. Establishing the scale and cost of phoenix activity? In 1996, the Australian Securities Commission (ASC, now ASIC) quantified the annual loss to Australian businesses due to

Write Your Message!

Captcha
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