Summer Tyme, Inc., is considering a new $3-$year expansion project that requires an initial fixed asset investment of $$3\mathrm{.}186$ million. The fixed asset will be depreciated straight$-$line to zero over its $3-$year tax life, after which time it will be worthless. The project is estimated to generate $$2,832,000$ in annual sales, with costs of $$1,132,800.$

Required:

If the tax rate is $32$ percent, what is the OCF for this project?

rev: $09\_18\_2012$

Multiple Choice

$$1,495,296$

$$1,699,200$

$$1,570,061$

$$1,420,531$

$$433,296$