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Focus Industries invested in a new machine that cost $90,000. The machine is being depreciated over 6 years using straight-line depreciation with no salvage value.

Focus Industries invested in a new machine that cost $90,000. The machine is being depreciated over 6 years using straight-line depreciation with no salvage value. The machine is expected to produce incremental cash revenues of $100,000 per year and incremental cash expenses of $35,000 per year.

The tax rate is 40%.

Calculate Focus Industries incremental operating cash flows.

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