Question: 3. value: 25.00 points P10-9 Calculating Project OCF [LO1] Summer Tyme, Inc., is considering a new 5-year expansion project that requires an initial fixed asset

 3. value: 25.00 points P10-9 Calculating Project OCF [LO1] Summer Tyme,

3. value: 25.00 points P10-9 Calculating Project OCF [LO1] Summer Tyme, Inc., is considering a new 5-year expansion project that requires an initial fixed asset investment of $5.454 million. The fixed asset will be depreciated straight-line to zero over its 5-year tax life, after which time it will be worthless. The project is estimated to generate $4,848,000 in annual sales, with costs of $1,939,200. Required If the tax rate is 32 percent, what is the OCF for this project? O $2,443,392 O $2,908,800 o $2,327,040 O$2.210,688 O $1,236,240

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