quad Enterprises is considering a new six year expansion project that requires an initial fixed asset investment of 2.052 million. The fixed asset will be depreciated straight line to zero over at six year life after which time it will be worthless the project is estimated to generate $1,824,000 in annual sales with cost of $729,600.

Quad Enterprises is considering a new 6-year expansion project that requires an initial fixed asset investment of $2.052 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 $1,824,000 in annual sales, with costs of $729,600. If the tax rate is 22 percent, what is the OCF for this project? Multiple Choice $975.316 $1,094,400 $586,872 $928.872