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Quad Enterprises is considering a new 2-year expansion project that requires an initial fixed asset investment of $2.592 million. The fixed asset will be depreciated
Quad Enterprises is considering a new 2-year expansion project that requires an initial fixed asset investment of $2.592 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 $2,304,000 in annual sales, with costs of $921,600. If the tax rate is 23 percent, what is the OCF for this project? Multiple Choice $1,382,400 $1,430,654 $66,528 $1,294,402 $1,362,528
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