Question: Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2,495,421. The fixed asset will be depreciated

Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2,495,421. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will be worthless. The project is estimated to generate $2,287,536 in annual sales, with costs of $1,757,452. If the tax rate is 0.23 , what is the OCF for this project?

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