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Jefferson & Sons is evaluating a project that will generate annual sales of $198,600 and annual operating costs of $94,500. The project will initially require
Jefferson & Sons is evaluating a project that will generate annual sales of $198,600 and annual operating costs of $94,500. The project will initially require $187,000 in fixed assets that will be depreciated straight-line to a zero book value over the four-year life of the project. The applicable tax rate is 22 percent. What is the operating cash flow for this project?
A) $86,480
B) $46,620
C) $91,483
D) $97,851
E) $89,920
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