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A project currently generates sales of $5 million, variable costs equal 50% of sales, and fixed costs are $1.0 million. The firm's tax rate s

image text in transcribed A project currently generates sales of $5 million, variable costs equal 50% of sales, and fixed costs are $1.0 million. The firm's tax rate s 21%. Assume all sales and expenses are cash items. a. What are the effects on cash flow, if sales increase from $5 million to $5.5 million? Note: Input the amount as positive value. Enter your answer in dollars not in millions. b. What are the effects on cash flow, if variable costs increase to 55% of sales? Note: Input the amount as positive value. Enter your answer in dollars not in millions

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