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Assume that a new project will annually generate revenues of $2,200,000 and cash expenses (including both fixed and variable costs) of $900,000, while increasing depreciation
Assume that a new project will annually generate revenues of
$2,200,000
and cash expenses (including both fixed and variable costs) of
$900,000,
while increasing depreciation by
$190,000
per year. In addition, the firm's tax rate is
37
percent. Calculate the operating cash flows for the new project.
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