Summer Tyme, Inc., is considering a new 4-year expansion project that requires an initial fixed asset investment of $6.426 million. The fixed asset will be depreciated straight-line to zero over its 4-year tax life, after which time it will be worthless. The project is estimated to generate $5,712,000 in annual sales, with costs of $2.284,800 Required: If the tax rate is 32 percent, what is the OCF for this project? $2.986,805 $2,844,576 $1,238,076 $3,427,200 $2.702,347 Dog Up! Franks is looking at a new sausage system with an installed cost of $280,800. This cost will be depreciated straight-line to zero over the project's 10-year life, at the end of which the sausage system can be scrapped for $43,200. The sausage system will save the firm $86,400 per year in pretax operating costs, and the system requires an initial investment in net working capital of $20,160. Required: If the tax rate is 32 percent and the discount rate is 12 percent, what is the NPV of this project? O $102,607.90 $111,390.83 $88,263.53 $97,721.81 O $101,932.55