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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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