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Jerod Coffees has recently started a new coffee line. They anticipate the new line will increase revenue by $145,000. Expenses are expected to increase by
Jerod Coffees has recently started a new coffee line. They anticipate the new line will increase revenue by $145,000. Expenses are expected to increase by $88,205.90. Jerod Coffees purchases a new piece of equipment for $110,000. This asset will be depreciated over the four year life of the project to $10,000. If the applicable tax rate is 32%, what is the OCF for this project? O A. $43,480 O B. $11,220 O C. $29,920 O D. $46,620 E. $46,480
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