Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $1,842,457. 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 $1,918,515 in annual sales, with costs of $1,585,657. If the tax rate is 0.33, what is the OCF for this project?
