Summer Tyme, Inc., is considering a new 4-year expansion project that requires an initial fixed asset investment of $5.724 million. The fixed asset will be depreciated straight-line to zero over its 4-year tax life, after which time it will be worthless. The project is estimated to generate $5,088,000 in annual sales, with costs of $2,035,200.
Required:
If the tax rate is 32 percent, what is the OCF for this project.