(Answered) Quad enterprises is considering a new 3 year expansion

Finance

Quad enterprises is considering a new 3 year expansion project that requires an initial fixed asset investment of 2.94M. The fixed asset will be depreciated (straight line) to zero over the 3 year tax life, after which time it is worthless. The project is estimated to generate 2,160,000 in annual sales with costs of 855,000. If the tax rate is 34% what is the OCF for this project.

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