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A project is expected to increase a firms sales revenues by $20,000 annually, decrease its cash expenses by $25,000 annually, and increase its deprecation by
A project is expected to increase a firms sales revenues by $20,000 annually, decrease its cash expenses by $25,000 annually, and increase its deprecation by $15,000 annually. The project has an expected economic life of 10 years. What is the net cash flow each year? Use 40 percent for the effective tax rate. Assume that there is no working capital to be liquidated at the end of the 10 years, and there is also no salvage value at the end of the 10 years.
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