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P10-9 Calculating Project OCF [LO1 Summer Tyme, Inc., is considering a new 4-year expansion project that requires an initial fixed asset investment of $5.400 million.
P10-9 Calculating Project OCF [LO1 Summer Tyme, Inc., is considering a new 4-year expansion project that requires an initial fixed asset investment of $5.400 million. The fixed asset will be depreciated straight-line to zero over its 4-year tax life, after which time it will be worthless. The project is estimated to generate $4,800,000 in annual sales, with costs of $1,920,000 Required If the tax rate is 34 percent, what is the OCF for this project? O $2.880,000 O $2,241,810 O $1.009,800 $2,477,790 O $2,359,800
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