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A proposed expansion project is expected to increase sales by $ 7 7 , 0 0 0 and increase cash expenses by $ 3 8
A proposed expansion project is expected to increase sales by $ and increase cash expenses by $ The project will require $ of fixed assets that will be depreciated using straightline depreciation to a zero book value over the fiveyear life of the project. The store has a marginal tax rate of percent. What is the operating cash flow of the project using the tax shield approach? Ignore bonus depreciation.
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