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Calculating Project OCF: Summer Tyme, Inc., is considering a new three year expansion project that requires an initial fixed asset investment of $3.9 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generated $2,650,000 in annual sales, which costs of $840,000. If the tax rate is 35 percent, what is the OCF for this project?

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Category:- Basic Finance
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