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A company is considering a new 6-year project that will have annual sales of $249,000 and costs of $156,000. The project will require fixed assets
A company is considering a new 6-year project that will have annual sales of $249,000 and costs of $156,000. The project will require fixed assets of $275,000, which will be depreciated on a 5-year MACRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, 11.52 percent, and 5.76 percent, respectively. The company has a tax rate of 21 percent. What is the operating cash flow for Year 2? Multiple Choice $68,472 $91,950 $74,133 $72,400 $76,920
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