Summer Tyme, Inc., is considering a new 5-year expansion project that requires an initial fixed asset investment of $2.592 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 $2,304,000 in annual sales, with costs of $921,600.

Required: If the tax rate is 33 percent, what is the OCF for this project?

A. $1,152,144

B. $578,880

C. $1,382,400

D. $1,042,416

E. $1,097,280