Company ZYZ is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.3 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which it will be worthless. The project is estimated to generate $1,720,000 in annual sales, with costs of $630,000. The tax rate is 22 percent and the required return is 11 percent. What is the projects OCF in Year 1?

Group of answer choices

$850,200

$1,018,867

$1,616,867