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A capital budgeting project is expected to generate an increase to annual operating cash flow of $10,000 per year. Annual depreciation from the project is

A capital budgeting project is expected to generate an increase to annual operating cash flow of $10,000 per year. Annual depreciation from the project is $5,000 and the company's tax rate is 40 percent. What is the projects estimated Year 1n cash flows?

a.

$ 11,000

b.

$ 9,000

c.

$ 8,000

d.

$ 15,000

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