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Calculating project ocf

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Calculating Project OCF.

H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $1,950,000.  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 generate $2,145,000 in annual sales, with costs of $1,205,000.  If the tax rate is 35 percent, what is the OCF for this project.

Please show all work and how you come up with the OCF.

Reference no: EM131466745

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