Squad Inc. is considering a new three$-$year expansion project that requires an initial fixed asset investment of $$1\mathrm{.}42$ million. The fixed asset will be depreciated straight$-$line to zero over its three$-$year tax life, after which time it will be worthless. The project is estimated to generate $$1\mathrm{.}600$ million in annual sales, with costs of $$560,000.$ If the tax rate is $21$ percent, what is the OCF for this project?

Question $1$Answer

A$.$

$$1,040,000$

B$.$

$$821,600$

C$.$

$$473,333$

D$.$

$$921,000$

E$.$

$$1,513,333$