Question: Calculating Project OCF. Summer Time, Inc. is considering a new 3-year project that requires an initial fixed asset investment of 3.9 million. The fixed asset

Calculating Project OCF. Summer Time, Inc. is considering a new 3-year project that requires an initial fixed asset investment of 3.9 million. The fixed asset will be depreciated straight line to zero over its three-year tax life, after which it will be worthless. The project is est. to generate 2.65 million in annual sales with variable costs of 600,000 and fixed cost of 240,000. If the tax rate is 35%, what is the operating cash flow for this project? -----> After calculating OCF calculate NPV, PI, and IRR given the required return is 12%.

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