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A project currently generates sales of $7 million, variable costs equal to 31% of sales, and fixed costs of $2.9 million. The firm's tax rate

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A project currently generates sales of $7 million, variable costs equal to 31% of sales, and fixed costs of $2.9 million. The firm's tax rate is 35%. What are the effects of the following changes on after-tax profits and cash flows? a. Sales increase from $7 million to $8 million. (Round your answers to 3 decimal places. Enter your answers in millions of dollars.) After-tax profits by million. million. After-tax cash flow by b. Variable costs increase to 44% of sales. (Round your answers to 3 decimal places. Enter your answers in millions of dollars.) After-tax profits by million. After-tax cash flow by million

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