If the tax rate is 34 percent the ocf for this project is

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Reference no: EM132000569

Summer Tyme. Inc.. is considering a new 6-year expansion project that requires an initial fixed asset investment of $3, 726 million.

The fixed asset will be depreciated straight-line to zero over its 6-year tax life, after which time it will be worthless.

The project is estimated to generate $3.312.000 in annual sales, with costs of $1, 324, 800.

If the tax rate is 34 percent, the OCF for this project is $. (Do not include the dollar sign ($). Round your answer to the nearest whole dollar amount, (e.g.. 32))

Reference no: EM132000569

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