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In 2019, your firm reported $600,000 in sales. Operating costs were $260,000, and depreciation expenses were $150.000. The firm has $80,000 in debt outstanding at
In 2019, your firm reported $600,000 in sales. Operating costs were $260,000, and depreciation expenses were $150.000. The firm has $80,000 in debt outstanding at a 6% interest rate. The firm hopes to increase sales by 15% in 2020. Operating costs and depreciation will increase at the same rate as sales. What is the firm's depreciation expense in 2020? Assume the firm is in the 20% tax bracket.
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