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Question: The Book Store is considering a new four-year expansion project that requires an initial fixed asset investment of $2.1 million. The fixed asset will be depreciated straight-line to zero over its four-year life, after which time it will be worthless. The project is estimated to generate $.98 million in annual sales, with costs of $.79 million. If the tax rate is 34 percent, what is the OCF for this project?

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Category:- Basic Finance
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