Question
A large grocery store chain is considering paying $312,000 for new store equipment. Under MACRS depreciation system, this equipment falls into the 7-year property class.
A large grocery store chain is considering paying $312,000 for new store equipment. Under MACRS depreciation system, this equipment falls into the 7-year property class. The grocery store chain's management estimates $114,000 in sales revenues and $25,000 in production costs every year in the future. The grocery store chain falls into a 28% tax rate bracket.
Calculate the grocery store chain's Operating Cash Flow in the 2nd year.
Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your final answer to TWO decimal places: for example, 10,000.23. Do NOT use the "$" sign in your answer.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started