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Quad Enterprises is considering a new 6 -year expansion project that requires an initial fixed asset investment of $2.268 million. The fixed asset will be

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Quad Enterprises is considering a new 6 -year expansion project that requires an initial fixed asset investment of $2.268 million. The fixed asset will be depreciated straight-line to zero over its 6-year tax life, after which time it will be worthless (TIP: "worthless" = not sold, and so no sales proceeds are generated). The project is estimated to generate $2,016,000 in annual sales, with costs of $806,400. If the tax rate is 23 percent, what is the OCF for this project? Multiple Choice $640,332 $1,209,600 $967,415 $1,069,249 $1,018,332

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