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A project with a life of 6 years is expected to provide annual sales of $420,000 and costs of $301,000. The project will require an

A project with a life of 6 years is expected to provide annual sales of $420,000 and costs of $301,000. The project will require an investment in equipment of $730,000, which will be depreciated on a straight-line method over the life of the project. You feel that both sales and costs are accurate to +/15 percent. The tax rate is 21 percent. What is the annual operating cash flow for the best-case scenario?

Multiple Choice

  • $162,242

  • $136,290

  • $55,177

  • $204,999

  • $139,527

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