Question: Longfellows Co. is considering a new five-year expansion project that requires an initial fixed asset investment of $4.940,000 million. The ed asset will be depreciated
Longfellows Co. is considering a new five-year expansion project that requires an initial fixed asset investment of $4.940,000 million. The ed asset will be depreciated using bonus depreciation. The project is estimated to generate $4,389,000 in annual sales, with costs of $1731.200. The tax rate is 0.36 percent. Wat is the operating cash flow for Years 1 and 2 for this project? Multiple Choice OCF1 - $3.479,392. OCF2=51.700,992 OCF - $2.056,672, OCF2 $1,068,672 OCF, $3,481.288; OCF $2,019,928 OCF, - $2,848,315, OCF2 = $3,111,672 OCFy-$2,312, 200; OCF2 $2,312,200
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