Question: Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.9 million. The fixed asset will be depreciated

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

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.9 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless The project is estimated to generate $2,190,000 in annual sales, with costs of $815,000. If the tax rate is 21 percent what is the OCF for this project? Asset investment $ Estimated annual sales S Costs $ Tax rate Project and asset life 2.900 000 2 190,000 815.000 21% 3 Complete the following analysis. Do not hard code values in your calculations. Sales Costs Depreciation EBT Taxes Net income

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