Please show formulas in Excel sheet. Thanks! Quad Enterprises is considering a new three year...
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Please show formulas in Excel sheet. Thanks!
Quad Enterprises is considering a new three year expansion project that requires an initial fixed asset investment of $2.9 million. The fixed asset will be depreciated straight line to zero over its three uear tax life, after which time it will be worthless. The project is estimated to generate $2,190,000 in annual sales, with costs of @815,000. If the tax rate is 21 percent, what is the OCF for this project?
Asset investment Estimated annual sales Costs Tax rate Project and asset life $ $ $ 2,900,000 2,190,000 815,000 21% 3 Complete the following analysis. Do not hard code values in your calculations. Sales Costs Depreciation EBT Taxes Net income OCF
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