Question
QuintEnterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.58 million. The fixed asset is classified for taxes
QuintEnterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.58 million. The fixed asset is classified for taxes under the3-year MACRS schedule. For accounting, it will be depreciated straight-line to zero over the3-year projectlife. At the end of the project, the fixed assetwill be worthless.The project is estimated to generate $2,040,000 in annual sales andannual costs of $735,000. If the tax rate is 34 percent, what is the OperatingCash Flow for this project? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.89.)
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