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A 6-year project is expected to provide annual sales of $165,000 with costs of $90,500. The equipment necessary for the project will cost $290,000 and

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A 6-year project is expected to provide annual sales of $165,000 with costs of $90,500. The equipment necessary for the project will cost $290,000 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 +/-15 percent. The tax rate is 40 percent. What is the annual operating cash flow for the worst-case scenario?

$87,028

$64,463

$41,038

$21,705

$33,803

A 6-year project is expected to peoide annual sales of $155.000 with costs o 590,500 The equioment necessary for the project it cost 5290000 and Will be depreciated on a straight-Ine method over the ire of the project. You feel that both sales and costs are accurete to --15 peroent. The tax rane is 40 peicen het is the enal operating cesh low for the worst-case scenaIon O $87028 O $64 463 O $41038 $21,705 $33803

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