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Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.77 million. The fixed asset will be depreciated
Esfandairi Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.77 million. 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 $1.883 million in annual sales, with costs of $0.74. If the tax rate is 21%, what is the OCF for this project? $1,096,870 $721,800 $668,300 $885,700
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