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Quad Enterprises is considering a new 6-year expansion project that requires an initial fixed asset investment of $1.944 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 $1.944 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 $1,728,000 in annual sales, with costs of $691,200. If the tax rate is 23 percent, what is the OCF for this project? Multiple Choice $916,499 $829,213 $548,856 $872,856 $1,036,800
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