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A 9-year project is expected to provide annual sales of $155,000 with costs of $83,000. The equipment necessary for the project will cost $370,000 and
A 9-year project is expected to provide annual sales of $155,000 with costs of $83,000. The equipment necessary for the project will cost $370,000 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 40 percent. What is the annual operating cash flow for the worst-case scenario? Multiple Choice $36,462.11 $45,784.44 $44,031.11 $48,416.00 $39,124.30
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