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A 9-year project is expected to provide annual sales of $209,000 with costs of $96,000. The equipment necessary for the project will cost $345,000 and
A 9-year project is expected to provide annual sales of $209,000 with costs of $96,000. The equipment necessary for the project will cost $345,000 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?
A 9-year project is expected to provide annual sales of $209,000 with costs of $96,000. The equipment necessary for the project will cost $345,000 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 jercent. The tax rate is 21 percent. What is the annual operating cash flow for the worst-case scenario? Multiple Choice $42,292 $63,642 $73,225 $53,625 $106,692Step by Step Solution
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