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Hans Hosiery is planning a $550,000 expansion to its facility. This cost will be depreciated on a straight-line basis over a 10-year period. The expansion
Hans Hosiery is planning a $550,000 expansion to its facility. This cost will be depreciated on a straight-line basis over a 10-year period. The expansion is expected to generate $361,000 in additional annual sales. Every year fixed costs are $79,000, with variable costs of 36% of sales, and a tax rate is 24%. What is the operating cash flow for the 8th year of this project? A. $101,314.40 B. $96,779.15 C. $111,655.22 D. $103,811.88 E. $101,235.60
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