Compute the ocf for project


Phone Home, Inc., is thinking of new three-year expansion project which needs the intial fixed asset investment of $4.2 million. Fixed asset will be decreased straight-line to zero over its three-year tax life, after which time it will be valueless. Project is evaluated to create $3,100,000 in annual sales, with costs of $990,000. If tax rate is 35%, Compute the OCF for this project?

Request for Solution File

Ask an Expert for Answer!!
Project Management: Compute the ocf for project
Reference No:- TGS033083

Expected delivery within 24 Hours