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Quad enterprises is considering a new three-year expansion project that requires and initial fixed asset investment of $2.9 million. The fixed asset will be depreciated
Quad enterprises is considering a new three-year expansion project that requires and initial fixed asset investment of $2.9 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,190,000 in annual sale, with costs of $815,000. If the tax rate is 35 percent, what is the OCF for this project? Please show all work.
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