Summer Tyme, Inc., is considering a new 4-year expansion project that requires an initial fixed asset investment of $1.782 million. The fixed asset will be depreciated straight-line to zero over its 4-year tax life, after which time it will be worthless. The project is estimated to generate $1,584,000 in annual sales, with costs of $633,600. If the tax rate is 32 percent, the OCF for this project is $???

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To calculate the Operating Cash Flow (OCF) for the project, we need to consider several factors.

1. Calculate the depreciation expense:
The fixed asset has a tax life of 4 years and will be depreciated straight-line to zero. To calculate the annual depreciation expense, divide the initial fixed asset investment by the tax life of the asset:

Depreciation Expense = Initial Fixed Asset Investment / Tax Life
Depreciation Expense = $1,782,000 / 4 years
Depreciation Expense = $445,500 per year

2. Calculate the annual earnings before taxes (EBT):
EBT is calculated by subtracting the annual costs from the annual sales:

EBT = Sales - Costs
EBT = $1,584,000 - $633,600
EBT = $950,400

3. Calculate the taxes:
Taxes are calculated based on the EBT and the given tax rate:

Taxes = EBT * Tax Rate
Taxes = $950,400 * 0.32
Taxes = $304,128

4. Calculate the OCF:
OCF is calculated by adding the depreciation expense to the earnings before taxes and subtracting the taxes:

OCF = EBT + Depreciation Expense - Taxes
OCF = $950,400 + $445,500 - $304,128
OCF = $1,091,772

Therefore, the OCF for this project is $1,091,772.