Question
(Calculating operating cash flows) Assume that a new project will annually generate revenues of $2,400,000. Cash expenses including both fixed and variable costs will be
(Calculating operating cash flows) Assume that a new project will annually generate revenues of $2,400,000. Cash expenses including both fixed and variable costs will be $500,000, and depreciation will increase by $280,000 per year. In addition, let's assume that the firm's marginal tax rate is 35 percent. Calculate the operating cash flows. What is the firm's operating cash flow?
The operating cash flow is $__________________? (Round to the nearest dollar and use thousands separators.)
Group of answer choices
1,620,000
1,053,000
1,333,000
1,515,000
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