Question
Assume that a new project will annually generate revenues of $2,400,000 and cash expenses (including both fixed and variable costs) of $500,000, while increasing depreciation
Assume that a new project will annually generate revenues of $2,400,000 and cash expenses (including both fixed and variable costs) of $500,000, while increasing depreciation by $210,000 per year. In addition, the firm's tax rate is 33 percent. Calculate the operating cash flows for the new project.
The firm's operating cash flows are $0. (Round to the nearest dollar.)
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Get StartedRecommended Textbook for
Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur Keown, John Martin
12th edition
133423824, 978-0133423822
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