Question: Quad Enterprises is considering a new 2-year expansion project that requires an initial fixed asset investment of $3.402 million. The fixed asset will be depreciated

Quad Enterprises is considering a new 2-year expansion project that requires

Quad Enterprises is considering a new 2-year expansion project that requires an initial fixed asset investment of $3.402 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 $3,024,000 in annual sales, with costs of $1,209,600. If the tax rate is 21 percent, what is the OCF for this project

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