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-. , Quad Enterprises is considering a new 4-year expansion project that requires an initial fixed asset investment of $4.752 million. The fixed asset will
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Quad Enterprises is considering a new 4-year expansion project that requires an initial fixed asset investment of $4.752 million. The fixed asset will be depreciated straight-line to zero over its 4-year tax life, after which time it will be worthless. The project is estimated to generate $4,224,000 in annual sales, with costs of $1,689,600. If the tax rate is 23 percent, what is the OCF for this project? Multiple Choice $2,113,492 $2,224,728 $2,534,400 $1,036,728 $2,335,964Step by Step Solution
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