The corner shop is considering a new four year expansion project that requires an initial fixed asset investment of 210000. The fixed asset will be depreciated straight line to zero over its four year life, after which time it will be worthless. The project is estimated to generate 48000 in annual sales, with costs of 31000. If the tax rate is 21 percent, what is the ocf for this project?

The corner shop is considering a new four year expansion project that requires an initial fixed asset investment of 210000. The fixed asset will be depreciated straight line to zero over its four year life, after which time it will be worthless. The project is estimated to generate 48000 in annual sales, with costs of 31000. If the tax rate is 21 percent, what is the ocf for this project?

Name: The corner shop is considering a new four year expansion project that
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Description: The corner shop is considering a new four year expansion project that requires an initial fixed asset investment of 210000. The fixed asset will be depreciated straight line to zero over its four year life, after which time it will be worthless. The

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...

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