Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. hubrey home inc. is considering a new three-year e

Hubrey Home Inc. is considering a new three-year expansion project that requires an initial fixed...

50.1K

Verified Solution

Question

Finance

image
Hubrey Home Inc. is considering a new three-year expansion project that requires an initial fixed asset investment of $4 million. The fixed asset falls into Class 10 for tax purposes (CCA rate of 30% per year), and at the end of the three years can be sold for a salvage value equal to its UCC. The project is estimated to generate $2.660.000 in annual sales, with costs of $843.000. If the tax rate is 35% what is the OCF for each year of this project? (Enter the answers in dollars. Do not round your intermediate colculations. Round the final answers to 2 decimal places. Omit \$ sign in your response.)

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

there are three brands you can choose; H&M, Banana, and Zara. H&M and Banana clothes cost...

Physics
1.2K views

given an electron has orbital angular momentum and spin angular momentum, l and s respectively. given the...

Accounting
1.2K views

A 20 year loan of $120, 000 at i = 6% is paid off by...

Physics
1.2K views

In the figure given the potential difference between A and B in steady state will...

Statistics
1.2K views

Class A B C D a What is the relative frequency of class D 0...

Algebra
1.2K views

5 Perform the indicated composition f x x g x x Find g f x...

Algebra
1.2K views

For n > 5, is there an arrangement of n circular disks where 2n intersection...

Accounting
1.2K views

the cost to retail percentage is 76%the ending inventory for 2021 is 24,070 what is...

Accounting
1.2K views

Why would we want to keep all of our budgeting assumptions in one place when...

Accounting
1.2K views

undefined Realized gains and losses on the sale of available-for-sale securities should be reported...

Accounting
1.2K views

Adam's firm bought two assets this year. He started using his new computer system costing...

Finance
1.2K views

If Helsinki Products stock has a beta of 1.4, the risk free rate is 1.5%,...