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A company currently generates annual revenue of $1 million and has a gross profit margin of 60% and a tax rate of 25%. Assume the
A company currently generates annual revenue of $1 million and has a gross profit margin of 60% and a tax rate of 25%. Assume the company makes a purchase of $500,000 in year 20X1. What will be the DIFFERENCE in operating cash flow in year 20X5 if that purchase is expensed rather than capitalized and straight-line depreciation over its five-year useful life?
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