Quad Enterprises is considering a new 5-year expansion project that requires an initial fixed asset Investment of $6.156 million. The fixed asset will be depreciated straight-line to zero over its 5-year tax life, after which time it will be worthless. The project is estimated to generate $5,472,000 in annual sales, with costs of $2,188,800. If the tax rate is 24 percent, what is the OCF for this project? Multiple Choice O $2,790,720 $2,930,256 $2,651,184 $1,559,520 $3,283,200
