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DNA Enterprises is considering a new 6-year project that requires an initial investment of $5.60 million in a fixed asset. The fixed asset will be
DNA Enterprises is considering a new 6-year project that requires an initial investment of $5.60 million in a fixed asset. The fixed asset will be straight-line depreciated to zero over the project life, after which it will be worthless. The project is estimated to generate $2.4 million in annual sales, with costs of $900,000. If the tax rate is 21%, what is the operating cash flow (OCF) for this project starting from the year one? A. $0.90 million B. $1.18 million C. $1.50 million D. $1.38 million E. $2.30 million
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