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ABC Company has a proposed project that will generate sales of 455 units annually at a selling price of $192 each. The fixed costs are
ABC Company has a proposed project that will generate sales of 455 units annually at a selling price of $192 each. The fixed costs are $7,319 and the variable costs per unit are $66. The project requires $33,150 of equipment that will be depreciated on a straight-line basis to a zero book value over the 13-year life of the project. That is, depreciation each year is $33,150/13. The tax rate is 34 percent. What is the operating cash flow?
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