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Firm AAA has identified the following information for the first year of the roll-out of its new proposed service: Projected sales: $20 million Operating costs
Firm AAA has identified the following information for the first year of the roll-out of its new proposed service: Projected sales: $20 million Operating costs (not including depreciation): $9 million Depreciation: $4 million The company faces a 40% tax rate What is the project's operating cash flow for the first year (t=1)? (7 points) (hint: OCF= (Sales Revenue COGS Depreciation)*(1-T) + Depreciation = EBIT *(1-T) + Depreciation)
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