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A company is considering a new four-year project with an initial investment requirement of $75,000. The equipment will be depreciated straight-line to zero over the

A company is considering a new four-year project with an initial investment requirement of $75,000. The equipment will be depreciated straight-line to zero over the life of the project and will be worthless at the end of the project. Sales are estimated at $142,000 with costs of $88,200. The tax rate is 34%. What is the project OCF?

Question 9 options:

a) $28,394
b) $30,506
c) $37,900
d) $39,394
e) $41,883

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