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Andover Engineering is evaluating a project that will increase sales by $2,780,000 and costs by $1,634,000. The project will initially cost $4,200,000 for fixed assets
Andover Engineering is evaluating a project that will increase sales by $2,780,000 and costs by $1,634,000. The project will initially cost $4,200,000 for fixed assets that will be depreciated straight-line to a zero book value over the 10-year life of the project. The applicable tax rate is 34 percent. What is the annual operating cash flow for this project?
$899,160 | ||
$726,000 | ||
$684,320 | ||
$642,916 | ||
$568,300 |
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