Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.97 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will be worthless. The project is estimated to generate $2,640,000 in annual sales, with costs of $1,056,000. If the tax rate is 21 percent, what is the OCF for this project?

Multiple Choice

$1,386,297

$1,532,223

$1,584,000

$469,260

$1,459,260