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Quad Enterprises is considering a new 2-year expansion project that requires an initial fixed asset investment of $6.264 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 $6.264 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 $5,568,000 in annual sales, with costs of $2,227,200. If the tax rate is 23 percent, what is the OCF for this project? Multiple Choice $3,340,800 $3,292,776 O $3,457,415 $3,128,137 O O $160,776
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