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A project will generate sales of 100 units annually at a selling price of $140 each. The variable costs per unit are $35 and the
A project will generate sales of 100 units annually at a selling price of $140 each. The variable costs per unit are $35 and the fixed costs are $10,000. The project will use equipment worth $100,000 that will be depreciated on a straight-line basis to a zero book value over a 10-year life of the project. If the tax rate is 25%, what is the operating cash flow?
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