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Keene, Inc., is considering a new three year expansion project that requires an initial fixed asset investment of $150,000. The fixed asset will be depreciated

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Keene, Inc., is considering a new three year expansion project that requires an initial fixed asset investment of $150,000. 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 expected to generate $90,000 annual sales with costs of 35% of the sales. Assume the tax rate is 34% What is the project's OCF? a $49,230 b. 540,150 CC $58,580 d. 555,610

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