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ABC Inc is considering a project with a five-year life. The project requires $32,000 of fixed assets that are classified as five-year property for MACRS.
ABC Inc is considering a project with a five-year life. The project requires $32,000 of fixed assets that are classified as five-year property for MACRS. Variable costs equal 67 percent of sales, fixed costs are $12,600, and the tax rate is 34 percent. What is the operating cash flow for Year 3 given the following sales estimates and MACRS depreciation allowance percentages?
$1,409.80 | ||
$1,311.16 | ||
$1,526.64 | ||
-$2,276.60 | ||
$640.89 |
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