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Brainstorm Toys estimates that its new line of robotic kits will generate sales of $7 million, operating costs of $4 million, and a depreciation expense

Brainstorm Toys estimates that its new line of robotic kits will generate sales of $7 million, operating costs of $4 million, and a depreciation expense of $1 million. If the tax rate is 40 percent, what is the firm's operating cash flow? Calculate the cash flow using the three methods of computing operating cash flow discussed in the textbook and in the class.

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