Question: Quad Enterprises is considering a new 6-year expansion project that requires an initial fixed asset investment of $1.998 million. The fixed asset will be depreciated

Quad Enterprises is considering a new 6-year expansion project that requires

Quad Enterprises is considering a new 6-year expansion project that requires an initial fixed asset investment of $1.998 million. The fixed asset will be depreciated straight-line to zero over its 6-year tax life, after which time it will be worthless. The project is estimated to generate $1,776,000 in annual sales, with costs of $710,400. If the tax rate is 24 percent, what is the OCF for this project? Multiple Choice $845,287 $556,776 $934,265 $1,065,600 O $889,776

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