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1 . A 5 - year project is expected to provide annual sales of $ 1 4 5 , 0 0 0 with costs of

1.A 5-year project is expected to provide annual sales of $145,000 with costs of $87,000. The equipment necessary for the project will cost $265,000 and will be depreciated on a straight-line method over the life of the project. You feel that both sales and costs are accurate to +/10 percent. The tax rate is 21 percent. What is the annual operating cash flow for the worst-case scenario?

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