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A proposed expansion project is expected to increase sales of JL Ticker's Store by $40,000 and increase cash expenses by $20,000. The project will incur
A proposed expansion project is expected to increase sales of JL Ticker's Store by $40,000 and increase cash expenses by $20,000. The project will incur an initial investment costs of $30,000 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 35 percent. What is the operating cash flow of the project using the tax shield approach
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