Question

Summer Tyme, Inc., is considering a new 4-year expansion project that requires an initial fixed asset investment of $1.782 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 $1,584,000 in annual sales, with costs of $633,600. If the tax rate is 32 percent, the OCF for this project is $???

Answer 1

39494