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A company is evaluating a project which will increase annual sales by $70,000 and annual costs by $40,000. The project will initially require $100,000 in
A company is evaluating a project which will increase annual sales by $70,000 and annual costs by $40,000. The project will initially require $100,000 in fixed assets which will be depreciated straight-line to a zero book value over the 5-year life of the project. The applicable tax rate is 34%. What is the project cash flow in year 1?
Question 6 options:
$30,000
$46,400
$46,600
$26,600
$26,400
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