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A project requires an initial investment of $6 million in new equipment. No additional net working capital is required for this project. The equipment is
A project requires an initial investment of $6 million in new equipment. No additional net working capital is required for this project. The equipment is assumed to be depreciated straight-line to zero over its 50-year life. The pre-tax salvage value of the equipment at the end of the project is assumed to be zero. The appropriate discount rate is 12%.
What is the operating cash flow (OCF) in each year at the financial break-even quantity?
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