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An expansion project will annually generate additional revenues of $2,500,000. It has fixed and variable costs totaling $1,250,000. It will increase depreciation costs by $620,000.
An expansion project will annually generate additional revenues of $2,500,000. It has fixed and variable costs totaling $1,250,000. It will increase depreciation costs by $620,000. The firm has a marginal tax rate of 34%. What is the projection for the firm's operating cash flow for this expansion project?
$214,200
$1,035,800
$630,000
$415,800
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