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Quad Enterprises is considering a new 6 - year expansion project that requires an initial fixed asset investment of $ 1 . 2 9 6

Quad Enterprises is considering a new 6-year expansion project that requires an initial fixed asset investment of $1.296 million. The fixed asset will be depreciated straight-line to zero over its 6-year tax life, after which time it will be worthless. The project is estimated to generate $1,152,000 in annual sales, with costs of $460,800.
If the tax rate is 24 percent, what is the OCF for this project?
a. $577,152
b. $691,200
c. $361,152
d. $548,294
e. $606,0010

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