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Summer Tyme, Inc., is considering a new 2-year expansion project that requires an initial fixed asset investment of $4.698 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 $4.698 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 $4,176,000 in annual sales, with costs of $1,670,400. Required: If the tax rate is 34 percent, what is the OCF for this project
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