Miller lite inc is considering a new four-year expansion, Ask an Expert

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Miller Lite, Inc. is considering a new four-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 four-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 35 percent, what is the OCF for this project?

a. 1,160,000

b. 997,720

c. 684,280

d. 845,000,000

e. 911,760

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92173816

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