Annual depreciation=(Cost-Salvage value)/Useful Life
=(2,320,000/3)=$773,333.333
OCF=(Sales-Costs)(1-tax rate)+Tax savings on Annual depreciation
=(1,735,000-650,000)(1-0.21)+(0.21*773,333.333)
=$1019550.
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $...
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