1
The Corner Shop is considering a new four-year expansion project that requires an initial fixed asset investment of $210,000. The fixed asset
will be depreciated straight-line to zero over its four-year life, after which time it will be worthless. The project is estimated to generate $48,000
in annual sales, with costs of $31,000. If the tax rate is 21 percent, what is the OCF for this project?
00:53:16
Multiple Choice
$29,640
$69,250
$24,455
$17,050