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Cochrane,Inc., is considering a new three-year expansion project that requires an initial fixed asset investment $2,640,000. The fixed asset will be depreciated straight-line to zero
Cochrane,Inc., is considering a new three-year expansion project that requires an initial fixed asset investment $2,640,000. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,330,000 in annual sales, with costs of $1,320,000. If the taxes rate is 35 percent, what is the operating cash flow for this project?
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