Question: (8 bookmarks) Quad Enterprises is considering a new three-year e... Bookmark Quad Enterprises is considering a new three-year expansion project that requires an initial fixed

(8 bookmarks)

Quad Enterprises is considering a new three-year e... Bookmark Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.9 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 $2,190,000 in annual sales, with costs of $815,000. If the tax rate is 21 percent, what is the OCF for this project?

Asset Investment: 2,900,000

Estimated Annual sales: 2,190,000

Costs: 815,000

Tax Rate: 21%

Project and Asset Life: 3

Complete the following analysis. Do not hard code values in calculations

Sales: _____

Costs: _____

Depreciation: _____

EBT: _____

Taxes: _____

Net Income: ______

OCF: ______

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