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Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $3,000,000. The fixed asset will be depreciated straight-line
Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $3,000,000. 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 $3,250,000 in annual sales, with costs of $2,270,000. If the tax rate is 22 percent, what is the OCF for this project?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
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