Question: Question 5 0/2 points The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $241,000 and cash
Question 5 0/2 points The Lumber Yard is considering adding a new product line that is expected to increase annual sales by $241,000 and cash expenses by $149,000. The initial investment will require $113,000 in fixed assets that will be depreciated using the 5-year MACRS. The company has a marginal tax rate of 29 percent. What is the project OCF in year 2? (Do not include the dollar sign ($). Round your answer to a whole dollar. (e.g., 4,132) MACRS 5-year property Year Rate 1 20.00% 32.00% 19.20% 11.52% 11.52% 5.76%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
