Is Considering A New 3 Year Expansion Project That Requires An Initial Fixed As

hi i am having issues doing this because ebit is negative how do you do it

Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2205000. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will be worthless. The project is estimated to generate $2203000 in annual sales, with costs of $1704000. If the tax rate is 0.20 , what is the OCF for this project?

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *