What is the ocf for the project

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Problem 1: Mangalore Constructions is considering a new three-year expansion project that requires an initial fixed asset investment of $2.15 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 $2.23 million in annual sales, with costs of $1.25 million. If the tax rate is 30% what is the OCF for this project?

Reference no: EM133011527

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