Estimate the operating cash flow for this project

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Reference no: EM132067485

Quint Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.58 million. The fixed asset is classified for taxes under the 3-year MACRS schedule.

For accounting, it will be depreciated straight-line to zero over the 3-year project life. At the end of the project, the fixed asset will be worthless.

The project is estimated to generate $2,040,000 in annual sales and annual costs of $735,000. If the tax rate is 34 percent, what is the Operating Cash Flow for this project?

(Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.89.)

Reference no: EM132067485

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