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1.) The following year, Chevelle, Inc. has sales of $49,500, costs of $18,400, depreciation expense of $1,900, and interest expense of $1,400. If the tax
1.) The following year, Chevelle, Inc. has sales of $49,500, costs of $18,400, depreciation expense of $1,900, and interest expense of $1,400. If the tax rate is increased to 40%, what is the operating cash flow, or OCF?
2.) The third year, Chevelle, Inc. has trouble. Sales drop to $20,500, with costs of $15,500, depreciation expense of $1,900, and interest expense of $1,100. If the tax rate is remains 40%, what is the operating cash flow, or OCF?
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