# Suppose your firm uses the NPV rule in making investment decisions and your after-tax OCF is $925000.

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## Question:

Suppose your firm uses the NPV rule in making investment decisions and your after-tax OCF is $925000. Assume same full debt funding at 12%, tax rate is 35%, 20 year period, straight-line depreciation, initial investment of $6000000 and after-tax exit cost of $5000000.

What will be the before-tax OCF?

**Related Book For**

## Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta