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ABC is investing $250,000 of fixed capital in a project that will be depreciated straight-line to zero over its 10-year life. Annual Sales are expected
ABC is investing $250,000 of fixed capital in a project that will be depreciated straight-line to zero over its 10-year life. Annual Sales are expected to be $760,000 and annual operating expenses are expected to be $420,000. An investment of $50,000 in net working capital is required over the projects life. The corporate income tax rate is 35%. What is the after-tax operating cash flow expected in year one?
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