Quad Enterprises is considering a new 6-year expansion project that requires an initial fixed asset investment of $3.294 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 $2,928,000 in annual sales, with costs of $1,171,200.

If the tax rate is 25 percent, what is the OCF for this project?

• $1,527,593

• $1,382,108

• $1,454,850

• $1,756,800

• $905,850