$2-$QUESTION $2$

Phone Home, Inc. is considering a new $6-$year expansion project that requires an initial fixed

asset investment of $$5\mathrm{.}994$ million. The fixed asset will be depreciated straight$-$line to zero over

its $6-$year tax life, after which time it will be worthless. The project is estimated to generate

$$5,328,000$ in annual sales, with costs of $$2,131,200.$ The tax rate is $31$ percent. What is the

operating cash flow for this project?