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(C) A proposed new investment has projected sales of RM2,350,500. Variable costs of RM720,300 and depreciation of RM289,500. Prepare a pro forma income statement assuming

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(C) A proposed new investment has projected sales of RM2,350,500. Variable costs of RM720,300 and depreciation of RM289,500. Prepare a pro forma income statement assuming a tax rate of 34%. Calculate the following: (i) Projected net income. (5 marks) (ii) Operating Cash Flow (OCF) (3 marks) (iii) Depreciation tax shield (2 marks)

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