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Esfandiri Enterprises is considering a new three year expansion project that requires an initial fixed asset investment of $2.18 million. The fixed asset will be
Esfandiri Enterprises is considering a new three year expansion project that requires an initial fixed asset investment of $2.18 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 $1.645 million in annual sales with costs of $610,000. If the tax rate is 27.00% what is the OCF per year (OCF will be the same for the three years) for this project?
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$650,058.06
$715,063.86
$786,570.25
$865,227.27
$951,750.00
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