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A company is considering an investment in production equipment. This investment will increase cash sales by $10,000 and the cost of these sales is $6,000.

A company is considering an investment in production equipment. This investment will increase cash sales by $10,000 and the cost of these sales is $6,000. Depreciation will be $1,500 and taxes will be $1,000. An initial cash outlay for working capital of $1,800 will be required. What is the operating cash flow?

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