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Quad Enterprises is considering a new 5-year expansion project that requires an initial fixed asset investment of $2.106 million. The fixed asset will be depreciated
Quad Enterprises is considering a new 5-year expansion project that requires an initial fixed asset investment of $2.106 million. The fixed asset will be depreciated straight-line to zero over its 5-year tax life, after which time it will be worthless. The project is estimated to generate $1,872,000 in annual sales, with costs of $748,800. If the tax rate is 23 percent, what is the OCF for this project?
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