1. Company ABC is considering a new three-year expansion project that requires an initial fixed asset investment of $2.79 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which it will be worthless. The project is estimated to generate $2,110,000 in annual sales, with annual costs of $805,000. The tax rate is 35 percent and the required return is 12 percent. What is the operating cash flow (OCF) in year 1?

   	A.	$1,173,750
   	B.	$29,149.45
   	C.	$6,330,000.72
   	D.	$3,915,000.65