Answer 11-6

piojects ree cash Hlow in year 1? 11-6. (Calculating operating cash flows) Assume that a new project will annually generate revenues of $2 million. Cash expenses including both fixed and variable costs will be $800,000, and depreciation will increase by $200,000 per year. In addition, let's assume that the firm's marginal tax rate is 34 percent. Calculate the operating cash flows. 11-7. (Calculating free cash flows) At present, Solartech Skateboards is considering expanding its product line to include gas-powered skateboards; however it