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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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