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Summer Tyme, Inc., is considering a new 2-year expansion project that requires an initial fixed asset investment of $3.402 million. The fixed asset will be

Summer Tyme, Inc., is considering a new 2-year expansion project that requires an initial fixed asset investment of $3.402 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 $3,024,000 in annual sales, with costs of $1,209,600. Required: If the tax rate is 33 percent, what is the OCF for this project? rev: 09_18_2012 $1,688,129 $75,978 $1,814,400 $1,865,827 $1,776,978

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