Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $5.346 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 $4,752,000 in annual sales, with costs of $1,900,800.Required:If the tax rate is 34 percent, what is the OCF for this project?

rev: 09_18_2012

• $2,612,056
• $2,363,288
• $2,851,200
• $705,672
• $2,487,672