Summer Tyme, Inc., is considering a new 5-year expansion project that requires an initial fixed asset investment of $4.536 million. The fixed asset will be depreciated straight-line to zero over its 5-year tax life, after which time it will be worthless. The project is estimated to generate $4,032,000 in annual sales, with costs of $1,612,800. Required: If the tax rate is 32 percent, what is the OCF for this project?

Options:

$1,935,360

$2,032,128

$2,419,200

$1,838,592

$1,028,160