$35$

Quad Enterprises is considering a new $3-$year expansion project that requires an initial fixed asset investment of $$2\mathrm{.}106$ million. The fixed asset will be depreciated straight$-$line to zero over its $3-$year tax life, after which time it will be worthless. The project is estimated to generate $$1,872,000$ in annual sales, with costs of $$748,800.$

$00$:$23$:$05$ If the tax rate is $21$ percent, what is the OCF for this project?

Multiple Choice

$$1,123,200$

$$1,086,485$

$$332,748$

$$1,034,748$

$$983,011$