Question
A replacement project will annually generate additional revenues of $750,000. It has fixed and variable costs totaling $300,000. It will increase depreciation costs by $320,000.
A replacement project will annually generate additional revenues of $750,000. It has fixed and variable costs totaling $300,000. It will increase depreciation costs by $320,000. The firm has a marginal tax rate of 40%. What is the projection for the firm's operating cash flow for this replacement project?
$52,000
$130,000
$398,000
$78,000
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International Finance Putting Theory Into Practice
Authors: Piet Sercu
1st edition
069113667X, 978-0691136677
