Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
New Topic  
mars03 mars03
wrote...
Posts: 119
Rep: 0 0
A month ago
Ontario Courier Service is considering investing in a capital asset that costs $64,000. The project also requires an investment in net working capital of $8,000. The project will generate annual after-tax operating income of $20,800 for the next four years. The asset has a CCA rate of 20%, with the half-year rule applicable in the first year and is expected to sell for $7,200 at the end of four years. The firm's cost of capital is 15% and marginal tax rate is 35%. Assume the asset class remains open after the asset is sold. What is the after-tax cash flow (ECF) in the final year of the project?

▸ $15,200

▸ $21,855

▸ $7,398

▸ $23,002
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
Author:
Read 16 times
1 Reply
Replies
Answer verified by a subject expert
CrazyW27CrazyW27
wrote...
Posts: 152
Rep: 1 0
A month ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

mars03 Author
wrote...

A month ago
This helped my grade so much Perfect
wrote...

Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
wrote...

2 hours ago
Correct Slight Smile TY
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  1148 People Browsing
Related Images
  
 264
  
 600
  
 162
Your Opinion
Which 'study break' activity do you find most distracting?
Votes: 741

Previous poll results: What's your favorite math subject?