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Summer Tyme, Inc., is considering a new 5-year expansion project that requires an initial fixed asset Investment of $2.970 million. The fixed asset will be

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Summer Tyme, Inc., is considering a new 5-year expansion project that requires an initial fixed asset Investment of $2.970 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 $2,640,000 in annual sales, with costs of $1,056,000. Required: If the tax rate is 32 percent, what is the OCF for this project? $1,584,000 O $1,203,840 O $1,267,200 $673,200 O $1,330,560 References eBook & Resources Multiple Choice Learning Objective: 10-01 How to determine the releva flows for a proposed project. Difficulty: Basic Section: 10,3 Pro Forma Financial Statements and Proje Cash Flows

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