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What is the minimum (break-even) $OCF of this project if the required return is 16% per year?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...

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A project requires a $1 million initial investment, and will yield $OCF incremental after-tax cash flows each year for 9 years. What is the minimum (break-even) $OCF of this project if the required return is 16% per year?

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