Question: uint enterprises is considering a new three year expansion project that requires an initial fixed asset investment of 2.58 million. The fixed asset is classified
uint enterprises is considering a new three year expansion project that requires an initial fixed asset investment of 2.58 million. The fixed asset is classified for taxes under the 3 years MACRS schedule. For accounting, it will be depreciated straight-line to zero over the 3 year project life. At the end of the project, the fixed asset will be worthless. The project is estimated to generate $2,040,000 in annual sales and annual costs of $735,000. If the tax rate is 34%, what is the operating cash flow for this project
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