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Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $1,641,564. The fixed asset will be depreciated

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Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $1,641,564. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will be worthless. The project is estimated to generate $2,441.040 in annual sales, with costs of $1,587,172. If the tax rate is 0.21, what is the OCF for this project? An asset used in a 4-year project falls in the 5-year MACRS class (refer to MACRS table on page 277), for tax purposes. The asset has an acquisition cost of $19,779,234 and will be sold for $3,066,743 at the end of the project. If the tax rate is 0.23, what is the aftertax salvage value of the asset (SVNOT)

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