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Quad Enterprises is considering a new 6-year expansion project that requires an initial fixed asset investment of $2.916 million. The fixed asset will be depreciated

Quad Enterprises is considering a new 6-year expansion project that requires an initial fixed asset investment of $2.916 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 $2,592,000 in annual sales, with costs of $1,036,800.If the tax rate is 24 percent, what is the OCF for this project?

  • $812,592
  • $1,233,662
  • $1,555,200
  • $1,298,592
  • $1,363,522

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