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(Estimated time allowance: 11 minutes) GoFast Corp. is planning to launch a new line of golf carts. The equipment needed for the project costs $10

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(Estimated time allowance: 11 minutes) GoFast Corp. is planning to launch a new line of golf carts. The equipment needed for the project costs $10 million and will be depreciated using MACRS method and has a 5-year MACRS classification (table below). The project lasts 10 years. It is estimated that annual sales will be $30 million. The variable production costs are 70% of sales. Cash fixed costs are $1.3 million a year. There are no other costs. The tax rate is 24% Year 3-Year 5-Year 7-Year 10-Year 1 33.33% 20,00%14.29% 10.00% 2 44,45%32.00% 24,49%18.00% 3 14.81%19.20%17.49% 14,40% 4 7.41% 11.52% 12.499611.52% 5 11.52%8.93% 9.22% 6 5.76% 8.93% 7.37% 7 8.93% 6.55% 4.45% 6.55% 9 6.56% 10 6.55% 11 3.28% 12 What is operating cash flow (in millions) for year 3? Show your answer to the nearest 2 decimals. Do not use the $ sign in your answer. For example, if the answer is $6,837 million enter your answer as 6.84 Do not enter it as $6.837. $6.8. 6.8.6.837. or 6,837.000 Your

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