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A new project costing $1,120,000 falls into the three-year MACRS category, which allocates depreciation at 33.33% in the first year. It is expected to generate
A new project costing $1,120,000 falls into the three-year MACRS category, which allocates depreciation at 33.33% in the first year. It is expected to generate $600,000 in new sales per year. Extra cash operating expenses will amount to $290,000 per year. If the firm is in a 40% tax bracket, determine the first year net operating cashflow.
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