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A proposed expansion project is expected to increase sales of JJs Store by $68,000 and increase cash expenses by $39,000. The project will require $34,000
A proposed expansion project is expected to increase sales of JJs Store by $68,000 and increase cash expenses by $39,000. The project will require $34,000 of fixed assets that will be depreciated using straight-line depreciation to a zero book value over the 4-year life of the project. The store has a marginal tax rate of 30 percent. What is the operating cash flow of the project using the tax shield approach?
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