QUESTION
105. Miller's, Inc. is considering a new 4-year expansion project that requires an initial fixed asset investment of $3.
Category: Business
Subject: Finance
Due Date: 02/03/2016
Question Asked: 2016-02-03 03:33:57
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105. Miller's, Inc. is considering a new
4-year expansion project that requires an initial fixed asset investment of
$3.6 million. The fixed asset will be depreciated straight-line to zero over
its 4-year life, after which time it will be worthless. The project is
estimated to generate $3.9 million in annual sales, with costs of $2.6 million.
If the tax rate is 34 percent, what is the OCF for this project?
A. $1,164,000
B. $997,720
C. $684,280
D. $858,000
E. $911,760
AVAILABLE ANSWERS
105. Miller's, Inc. is considering a new 4-year expansion project that requires an initial fixed asset investment of $3.
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Posted on 2016-02-03 03:33:57
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... to zero over its 4-year life, after which time it will be worthless. The project is estimated t...
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