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A project currently generates sales of $17 million, variable costs equal 40% of sales, and fixed costs are $3.4 million. The firms tax rate is
A project currently generates sales of $17 million, variable costs equal 40% of sales, and fixed costs are $3.4 million. The firms tax rate is 30%. Assume all sales and expenses are cash items
b. What are the effects on cash flow, if variable costs increase to 45% of sales?
Cash Flow Decreases by ___________________
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