Quad enterprises is considering a new three-year expansion


Question: Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.3 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 $2013751 in annual sales, with costs of $733116. If the tax rate is 35 percent, what is the OCF for this project? (Do not round intermediate calculations and round your final answer to the nearest dollar amount. Omit the "tiny_mce_markerquot; sign and commas in your response. For example, $123,456.78 should be entered as 123457.)

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Finance Basics: Quad enterprises is considering a new three-year expansion
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