Quad Enterprises is considering a new 2-year expansion project that requires an initial fixed asset investment of $4.536 million. The fixed asset will be depreciated straight-line to zero over its 2-year tax life, after which time it will be worthless (TIP: "worthless" = not sold, and so no sales proceeds are generated). The project is estimated to generate $4,032,000 in annual sales, with costs of $1,612,800. If the tax rate is 24 percent, what is the OCF for this project? $2,502,058 $2,419,200 $114,912 $2,382,912 $2,263,766?

Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $5.886 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $457,800. The project requires an initial investment in net working capital of $654,000. The project is estimated to generate $5,232,000 in annual sales, with costs of $2,092,800. The tax rate is 23 percent and the required return on the project is 11 percent. What is the project's Year 0 net cash flow? What is the project's Year 1 net cash flow? What is the project's Year 2 net cash flow? What is the project's Year 3 net cash flow? What is the NPV?