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A proposed expansion project is expected to increase sales of JL Ticker's Store by RM35,000 and increase cash expenses by RM21,000. The project will cost

A proposed expansion project is expected to increase sales of JL Ticker's Store by RM35,000 and increase cash expenses by RM21,000. The project will cost RM24,000 and 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?

2 points

RM5,600

RM14,600

RM7,800

RM11,600

RM13,300

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