Question
In: Finance
Hubrey Home Inc. is considering a new three-year expansion project that requires an initial fixed asset...
|
Hubrey Home Inc. is considering a new three-year expansion project that requires an initial fixed asset investment of $3.1 million. The fixed asset falls into Class 10 for tax purposes (CCA rate of 30 percent per year), and at the end of the three years can be sold for a salvage value equal to its UCC. The project is estimated to generate $2,570,000 in annual sales, with costs of $814,000. If the tax rate is 35 percent, what is the OCF for this project? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567. Do not round your intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
|
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Hubrey Home Inc. is considering a new three-year expansion project that requires an initial fixed asset...
Hubrey Home Inc. is considering a new three-year expansion
project that requires an initial fixed asset investment of $3.7
million. The fixed asset falls into Class 10 for tax purposes (CCA
rate of 30% per year), and at the end of the three years can be
sold for a salvage value equal to its UCC. The project is estimated
to generate $2,630,000 in annual sales, with costs of $832,000. If
the tax rate is 35%, what is the OCF for...
Hubrey Home Inc. is considering a new three-year expansion project that requires an initial fixed asset...
Hubrey Home Inc. is considering a new three-year expansion
project that requires an initial fixed asset investment of $3.2
million. The fixed asset falls into Class 10 for tax purposes (CCA
rate of 30% per year), and at the end of the three years can be
sold for a salvage value equal to its UCC. The project is estimated
to generate $2,580,000 in annual sales, with costs of $817,000. If
the tax rate is 35%, what is the OCF for...
Hubrey Home Inc. is considering a new three-year expansion project that requires an initial fixed asset...
Hubrey Home Inc. is considering a new three-year expansion
project that requires an initial fixed asset investment of $4.9
million. The fixed asset falls into Class 10 for tax purposes (CCA
rate of 30 percent per year), and at the end of the three years can
be sold for a salvage value equal to its UCC. The project is
estimated to generate $2,750,000 in annual sales, with costs of
$870,000. If the tax rate is 35 percent, what is the...
Hubrey Home Inc. is considering a new three-year expansion project that requires an initial fixed asset...
Hubrey Home Inc. is considering a new three-year expansion
project that requires an initial fixed asset investment of $4.7
million. The fixed asset falls into Class 10 for tax purposes (CCA
rate of 30 percent per year), and at the end of the three years can
be sold for a salvage value equal to its UCC. The project is
estimated to generate $2,730,000 in annual sales, with costs of
$864,000. If the tax rate is 35 percent, what is the...
Hubrey Home Inc. is considering a new three-year expansion project that requires an initial fixed asset...
Hubrey Home Inc. is considering a new three-year expansion
project that requires an initial fixed asset investment of $2.9
million. The fixed asset falls into Class 10 for tax purposes (CCA
rate of 30% per year), and at the end of the three years can be
sold for a salvage value equal to its UCC. The project is estimated
to generate $2,550,000 in annual sales, with costs of $808,000. If
the tax rate is 35%, what is the OCF for...
Phone Home, Inc. is considering a new 4-year expansion project that requires an initial fixed asset...
Phone Home, Inc. is considering a new 4-year expansion project
that requires an initial fixed asset investment of $3 million. The
fixed asset will be depreciated straightline to a zero book value
over its 4-year tax life. The firm expects to be able to sell these
assets for $231,000 at the end of the project. It is expected that
this project will generate new sales of $2,640,000. The firm is
also expecting to lose sales of approximately $420,000 each year...
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset...
H. Cochran, Inc., is considering a new three-year expansion
project that requires an initial fixed asset investment of $2.15
million. The fixed asset will be depreciated straight-line to zero
over its three-year tax life, after which time it will be
worthless. The project is estimated to generate $2.23 million in
annual sales, with costs of $1.25 million. If the tax rate is 23
percent, what is the OCF for this project? (Do not round
intermediate calculations and round your answer...
1. Keiper, Inc., is considering a new three-year expansion project that requires an initial fixed asset...
1.
Keiper, Inc., is considering a new three-year expansion project
that requires an initial fixed asset investment of $2.7 million.
The fixed asset will be depreciated straight-line to zero over its
three-year tax life, after which time it will be worthless. The
project is estimated to generate $2,080,000 in annual sales, with
costs of $775,000. The project requires an initial investment in
net working capital of $300,000, and the fixed asset will have a
market value of $210,000 at the...
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset...
H. Cochran, Inc., is considering a new three-year expansion
project that requires an initial fixed asset investment of
$2,350,000. The fixed asset will be depreciated straight-line to
zero over its three-year tax life, after which time it will be
worthless. The project is estimated to generate $3,310,000 in
annual sales, with costs of $2,330,000. Assume the tax rate is 23
percent and the required return on the project is 11 percent. What
is the project’s NPV?
H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset...
H. Cochran, Inc., is considering a new three-year expansion
project that requires an initial fixed asset investment of
$2,300,000. The fixed asset will be depreciated straight-line to
zero over its three-year tax life. The project is estimated to
generate $2,900,000 in annual sales, with costs of $1,910,000. The
project requires an initial investment in net working capital of
$186,000 and the fixed asset will have a market value of $221,000
at the end of the project. Assume that the tax...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Read at least 2 academically reviewed articles and Write an annotated bibliography paper on Master Budgeting
- Why normalization and referential integrity are important principles when designing relational databases?
- Respond to the following in a minimum of 175 words: Discuss what elements should be present...
- 1) The 3rd bright fringe of a double slit interference pattern is 30.0 cm above the...
- A solar cell generates a potential difference of 0.320 V when a 445.0 ? resistor is...
- A ceiling fan consists of a small cylindrical disk with 5 thin rods coming from the...
- You measure the following quantities as A = 1.0 m ± 0.2 m, B = 2.0...
ADVERTISEMENT