Considering new three-year expansion project

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Reference no: EM132023593

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.56 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 generate $2086971 in annual sales, with costs of $742529. If the tax rate is 34 percent, what is the OCF for this project? (Do not round intermediate calculations and round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457)

Reference no: EM132023593

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