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A firm is considering taking a project that will produce $ 1 4 million of revenue per year. Cash expenses will be $ 8 million,

A firm is considering taking a project that will produce $

14

million of revenue per year. Cash expenses will be $

8

million, and depreciation expenses will be $

1

million per year. What is the operating cash flow on the project, per year, if the firm is in the

35

percent marginal tax rate?

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