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Hacksaw Cois considering a new hacksaw that is expected to create revenue of $100,000 the first year of which 40% will be Accounts Receivables collected

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Hacksaw Cois considering a new hacksaw that is expected to create revenue of $100,000 the first year of which 40% will be Accounts Receivables collected next year. Hacksaw expects the new hacksaw will have the following first year expenses: Labor @ $30,000; Utilities @ $15,000; Overhead @ $5,000; Interest Expense @ $5,000; and Depreciation @ $20,000. The corporate tax rate is 35%. a. What is the expected Net Income for the first year? b. What is the expected OCF for the first year? a. $19,500; b. -$500 a. $16,500; b.-$3,750 a. $21,000; b. $1,000 a. $21,000; b. $4,000

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