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BRC Corporation is considering a new 3-year expansion project that requires fixed investment of Rs 2.7 million. The project is estimated to produce annual sales
BRC Corporation is considering a new 3-year expansion project that requires fixed investment of Rs 2.7 million. The project is estimated to produce annual sales of Rs 2,400,000 and annual cash operating expenses of Rs 960,000. The company uses straight-line method of depreciation. The fixed asset will be depreciated to zero over its life time. The tax rate is 35%. What is the projects Year 3 cash flow?
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