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H Cochran Inc is considering a new threeyear expansion project that requires an initial fixed asset investment of $2430000 The fixed asset will be depreciated straightline to zero over its

H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,430,000. 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 $2,260,000 in annual sales, with costs of $1,250,000.

  

If the tax rate is 40 percent, what is the OCF for this project? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

  

OCF            $

 

Apr 04 2020 View more View Less

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