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Quad Enterprises is considering a new 4-year expansion project that requires an initial fixed asset investment of $2.214 million. The fixed asset will be depreciated
Quad Enterprises is considering a new 4-year expansion project that requires an initial fixed asset investment of $2.214 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 $1,968,000 in annual sales, with costs of $787,200 If the tax rate is 22 percent, what is the OCF for this project? Multiple Choice O S1042,794 S499 294 S1094,934 SL180,000 O 5990,554
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