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Saved Quad Enterprises is considering a new 6-year expansion project that requires an initial fixed asset investment of $3.78 million. The fixed asset will be
Saved Quad Enterprises is considering a new 6-year expansion project that requires an initial fixed asset investment of $3.78 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 $3,360,000 in annual sales, with costs of $1,344,000. If the tax rate is 24 percent, what is the OCF for this project? 9 Multiple Choice $1,683,360 $2,016,000 $1,767,528 $1,053,360 $1,599,192
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