Question: QUESTION 4 Pierre Wineries is evaluating a project that would require an initial investment in equipment of $80.000 and that is expected to last for
QUESTION 4 Pierre Wineries is evaluating a project that would require an initial investment in equipment of $80.000 and that is expected to last for 6 years. MACRS depreciation would be used where the depreciation rates in years 1. 2. 3. 4 and 5 are 40.0%, 25.0%, 15.04, 10.09, and 10.0%, respectively. For each year of the project, Pierre Wineries expects relevant annual revenue associated with the project to be 543,000 and relevant annual costs associated with the project to be $30,000. The tax rate is so percent. What is ex plus Y) if X is the relevant operating cash flow (OCF) associated with the project expected in year 1 of the project and is the relevant OCF associated with the project expected in year 3 of the project? a. 516,000 (plus or minus 5100) b. 135,000 (plus or minus 5100) c. 133.000 plus or minus 51001 d. 154,000 plus or minus 5100) e. None of the above is within $100 of the correct
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