Cochrane, Inc., is considering a new three-year fixed expansion project that requires an initial fixed asset investment of $1,860,000. 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 $1,950,000 in annual sales, which costs of $1,060,000. If the tax rate is 35 percent, what is the OCF for this project?

a. Suppose the required return on the project is 14 percent. What is the project's NPV?