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A firm in the 40 percent tax bracket considers buying new equipment. While this investment would increase annual revenues by $100, it also raises annual

A firm in the 40 percent tax bracket considers buying new equipment. While this investment would increase annual revenues by $100, it also raises annual cash operating expenses by $40. Furthermore, CCA charge has gone up $20 per year. What is the resulting annual operating cash flow?

$24

$40

$44

$20

$50

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