Question: Pls solve i dont have much time only 30 min Question 5. Omega plc is considering a new three-year expansion project that requires an initial
Question 5. Omega plc is considering a new three-year expansion project that requires an initial tha current asset investment of 3.9 million. The non-current asset will be depreciated using a 20 percen. reducing-balance method (depreciation will be 780,000 for year 1,624,000 for year 2,2,496,000 for year 3. At the end of three years the project will be worthless. The project is estimated to generate 2,650,000 in annual sales every year, with annual costs of 840,000. i) If the tax rate is 28 percent, what is the profit after tax and depreciation for each year for this project. ii) Suppose the required return on the project is 12 percent What is the pis iii) Based on the Average Accounting Retum AAR mints)
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