Quad enterprises is considering a new 5-year expansion project that requires an initial fixed asset investment of $4.158 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 $3696000 in annual sales, with costs of $1478400. If the tax rate is 21 percent, what is the OCF for this project?

Quad Enterprises is considering a new 5 year expansion project that requires an initial fixed asset investment of $4158 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 $3,696,000 in annual sales, with costs of $1,478,400. If the tax rate is 21 percent, what is the OCF for this project? Multiple Choice $1,926,540 $1,830.213 $1,094.940 $1,926,540 $1.830.213 $1.094.940, $2,022,867 $2.217.600