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Summer Tyme, Inc., is considering a new 2-year expansion project that requires an initial fixed asset investment of $3.078 million. The fixed asset will be

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Summer Tyme, Inc., is considering a new 2-year expansion project that requires an initial fixed asset investment of $3.078 million. The fixed asset will be depreciated straight-line to zero over its 2-year tax life, after which time it will be worthless. The project is estimated to generate $2,736,000 in annual sales, with costs of $1,094,400. Required: If the tax rate is 31 percent, what is the OCF for this project? Multiple Choice $1.529,304 $1,609,794 $1,641,600 $70,794 - $1,690,284

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