Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. esfandairi enterprises is considering a new three-

Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset...

50.1K

Verified Solution

Question

Finance

image

Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.37 million. The fixed asset will be depreciated straight- line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1,675,000 in annual sales, with costs of $645,000. If the tax rate is 21 percent, what is the OCF for this project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) OCF

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The time between arrivals of parts in a single machine queuing system is uniformly distributed from...

Statistics
Q

giving relevant agricultural examples, what are the three main ways that microorganisms affect our food supply?

Biology
Q

A materials scientist has created an alloy containing aluminum, copper, and zinc, and wants to determine...

Chemistry
Q

Q) List down the factors that should be considered while designing a factory building? Will you...

Mechanical Engineering
Q

An electric dipole of dipole moment Pis placed perpendicular to electric lines of force of...

Physics
Q

The elements that compose seawater, along with the corresponding percents, are shown in the table.If...

Basic Math
Q

Sarah invested $3,800 in an account paying an interest rate of 3.6% compounded daily. Assuming...

Basic Math
Q

Exploration 2 1 13 Use Taylor s Theorem to derive the error terms the formulas...

Calculus
Q

If one U S dollar was worth 1 22 Canadian dollars when Sal went to...

Algebra
Q

complete steps 3-5 of the template to determine the cost per equivalen...

Accounting
Q

SVE & Exit TB MC Qu. 09-74 On December 1, Victoria Company... On December 1,...

Accounting
Q

Brandlin Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017,...

Accounting