Operating cash flow for project

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Reference no: EM132000744

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 Year 2 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: EM132000744

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