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Quad Enterprises is considering a new 2 - year expansion project that requires an initial fixed asset investment of $ 3 . 8 8 8

Quad Enterprises is considering a new 2-year expansion project that requires an initial fixed asset investment of $3.888 million. The fixed asset will be depreciated straight-line to zero over its 2-year tax life, after which time it will be worthless. The project is estimated to generate $3,456,000 in annual sales, with costs of $1,382,400. If the tax rate is 21 percent, what is the OCF for this project?

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