6. 9.

Calculating project OCF [LO 10.1] Berowra Ferries is considering a new three-year expansion project that requires an initial non-current asset investment of $2.32 million. The non-current asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1.735 million in annual revenue, with expenses of $650 000. If the tax rate is 30 per cent, what is the OCF for this project?