CCA= capital cost allowance

UCC= Undepreciated capital cost

OCF= operating cash flow

Hubrey Home Inc is considering a new three-year expansion project that requires an initial fixed asset investment of $37 million. The fixed asset falls into Class 10 for tax purposes (CCA rate of 30% per year), and at the end of the three years can be sold for a salvage value equal to its UCC The project is estimated to generate $2,630,000 in annual sales, with costs of $832,000. If the tax rate is 35% what is the OCF for each year of this project? (Enter the answers in dollars. Do not round your intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) 0671 OCF2