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Quad Enterprises is considering a new 3-year expansion project that requires an Initial fixed asset Investment of $3.078 million. The fixed asset will be depreciated
Quad Enterprises is considering a new 3-year expansion project that requires an Initial fixed asset Investment of $3.078 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 $2,736,000 in annual sales, with costs of $1,094,400. If the tax rate is 22 percent, what is the OCF for this project? Multiple Choice O $1,506.168 $480,168 O U $1,581,476 O O $1,430.860 O $1.641,600
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