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(CPT) just purchased new fitness room equipment for $800,000. The equipment will be depreciated straight line for the next 5 years to a salvage value
(CPT) just purchased new fitness room equipment for $800,000. The equipment will be depreciated straight line for the next 5 years to a salvage value of $125,000. CPT expects revenues to be $1,000,000 per year for the next 5 years with maintenance costs of 150,000 per year. If the tax rate is 24%, what is the incremental operating cash flow for CPT?
Group of answer choices $850,000 $715,000 $747,400 $171,600 $678,400
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