Question: Quad Enterprises is considering a new 2 -year expansion project that requires an initial fixed asset investment of $3294 million. The fixed asset will be

Quad Enterprises is considering a new 2 -year expansion project that requires an initial fixed asset investment of $3294 million. The fixed asset will be depreciated straight-line to zero over its 2 -year tax life, after which time it will be worthless. The project is estimated to generate $2,928,000 in annual sales, with costs of $1,171,200 If the tax rate is 24 percent, what is the OCF for this project? Multiple Choice $1,643,926 $1,756,800

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