Summer Tyme, Inc., is considering a new 5-year expansion project that requires an initial fixed asset investment of $3.348 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 $2,976,000 in annual sales, with costs of $1,190,400.

Required:

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

rev: 09_18_2012 $1,428,480 $758,880 $1,357,056 $1,785,600 $1,499,904