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?