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Esfandairi Enterprises is considering a new three - year expansion project that requires an initial fixed asset investment of $ 2 , 6 5 0

Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2,650,000. 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 $2,830,000 in annual sales, with costs of $1,850,000. If the tax rate is 25 percent, what is the OCF for this project?

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