Utility costs are expected to be 15000 a year and labor


NBV Corp bought a jPad maker for $1 million which will be depreciated stright-line to zero salvage over 25 years. The jPad is expected to create $120,000 in revenue a year. Utility costs are expected to be $15,000 a year and labor costs are expected to be $40,000 a year. The tax rate is 30%. What is the expected OCF for the first year?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Utility costs are expected to be 15000 a year and labor
Reference No:- TGS02492612

Now Priced at $10 (50% Discount)

Recommended (90%)

Rated (4.3/5)