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A project will increase sales by $60,000 and operating expenses by $51,000. The equipment will cost $40,000 and be depreciated using MACRS (5 year life).
A project will increase sales by $60,000 and operating expenses by $51,000. The equipment will cost $40,000 and be depreciated using MACRS (5 year life). Interest expense is $500 per year. The company has a marginal tax rate of 35%. What is the operating cash flow of the project Yar 1?
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