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Bobcat Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.10 million. The fixed asset will be depreciated
Bobcat Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.10 million. The fixed 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 $1.45 million in annual sales, with costs of $495,000. If the tax rate is 21 percent, what is the OCF for this project? (Do not round intermediate calculations.) Multiple Choice $788,465.45 $842,922.10 $901,450.00 $767,150 $922,187.45
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