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Hubrey Home Inc. is considering a new three-year expansion project that requires an initial fixed asset investment of $4.4 million. The fixed asset falls into Class 10 for tax purposes (CCA rate of 30 percent 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 $2,700,000 in annual sales, with costs of $855,000. If the tax rate is 35 percent, what is the OCF for each year of this project? (Enter the answers in dollars. Do not round your intermediate calculations. Round the final answers to 2 decimal places.) |
OCF1:
OCF2:
OCF3:
please provide the steps, thanks.
Apr 03 2020 View more View Less
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