John Wall Inc. is launching a line of "2" branded items in a 2-year project that involves equipment that will be purchased today for $170000, relevant annual sales of $100000, relevant annual costs of $70000, and a tax rate of 20%. What is OCF expected to in 2nd year of the project if MACRS depreciation is used where the depreciation rates in years 1, 2, 3, and 4 are 50%, 30%, 20%, and 10%, respectively?

Answer rating: 100% (QA)

Heres the calculation of the expected Operating Cash Flow OCF for the 2nd ... View the full answer