What is x plus y if x is the relevant operating cash flow


Fairfax Pizza is evaluating a project that would require an initial investment in equipment of 400,000 dollars and that is expected to last for 8 years. MACRS depreciation would be used where the depreciation rates in years 1, 2, 3, and 4 are 44 percent, 34 percent, 16 percent, and 6 percent, respectively. For each year of the project, Fairfax Pizza expects relevant, incremental annual revenue associated with the project to be 476,000 dollars and relevant, incremental annual costs associated with the project to be 392,000 dollars. The tax rate is 50 percent. What is (X plus Y) if X is the relevant operating cash flow (OCF) associated with the project expected in year 1 of the project and Y is the relevant OCF associated with the project expected in year 4 of the project?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is x plus y if x is the relevant operating cash flow
Reference No:- TGS02815336

Expected delivery within 24 Hours