Question
In: Finance
Hubrey Home Inc. is considering a new three-year expansion project that requires an initial fixed asset...
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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))
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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...
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Hubrey Home Inc. is considering a new three-year expansion project that requires an initial fixed asset...
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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
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Hubrey Home Inc. is considering a new three-year expansion project that requires an initial fixed asset...
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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...
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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.
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three-year tax life, after which time it will be worthless. The
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H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset...
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H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset...
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