4. I need help with this question. Chauhan Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $1.96 million.The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project isestimated to generate $1.445 million in annual sales, with costs of $580,000. If the tax rate is 21 percent, what is the OCF for thisproject?Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.OCF

EXPLANATIONTo determine the Operating Cash Flow (OCF) for the project, we start with the given…

Answered: Chauhan Enterprises is considering a…

Financial Management: Theory & Practice

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