Quad Enterprises is considering a new 5-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 5-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 23 percent, what is the OCF for this project?

a) 1,335,339

b) 1,405,620

c) 790,020

d) 1,475,901

e) 1,641,600