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Chiefland Campers is evaluating a project that will not affect revenues, but will save the firm $110,000 per year in before-tax operating costs, excluding depreciation.
Chiefland Campers is evaluating a project that will not affect revenues, but will save the firm $110,000 per year in before-tax operating costs, excluding depreciation. The project's depreciable basis is $840,000, and it will be depreciated on a straight-line basis to a book value o $0 over the next 10 years. The firm's tax rate is 34%. What are the annual supplemental cash flows?
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