Question: Question 5 1 point Number Help Based on the following information, what is the relevant operating cash flow (OCF) associated with the project expected to

 Question 5 1 point Number Help Based on the following information,

Question 5 1 point Number Help Based on the following information, what is the relevant operating cash flow (OCF) associated with the project expected to be in year 3? The project would require an initial investment in equipment of 820,000 dollars that would be depreciated using MACRS where the depreciation rates in years 1, 2, 3, and 4 are 40 percent, 24 percent, 24 percent, and 12 percent, respectively. At the end of the project in 3 years, the equipment would be sold for an expected after-tax cash flow of 18,200 dollars. In year 3 of the project, relevant revenue associated with the project would be 474,000 dollars and relevant costs associated with the project would be 292,800 dollars. The tax rate is 20 percent. Number

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!