Keiper, Inc., is considering a new three$-$year expansion project that requires an initial fixed asset

investment of $$2\mathrm{.}9$ 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

$$2,190,000$ in annual sales, with costs of $$815,000.$ If the tax rate is $35$ percent, what is the OCF

for this project?

Complete the following analysis. Do not hard code values in your calculations.

Sales

Costs

Depreciation

EBT

Taxes

Net income

OCF