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A project will last for five years. It requires an initial investment in year zero of $ 2 , 5 0 0 , 0 0

A project will last for five years. It requires an initial investment in year zero of $2,500,000, which can be depreciated "straight line" to zero over the project's life. In the first year of the project, the firm expects to generate sales of $2,000,000 with variable costs equal to 30% of total sales, and fixed costs of $500,000. The company pays taxes at a rate of 22%. What would be the project's cash flow from assets in its first year (year 1)?|
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