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John Wall Inc. is launching a line of 2 branded items in a 2-year project that involves equipment that will be purchased today for $140000,
John Wall Inc. is launching a line of "2" branded items in a 2-year project that involves equipment that will be purchased today for $140000, relevant annual sales of $100000, relevant annual costs of $40000, and a tax rate of 20%. What is OCF expected to in 2nd year of the project if MACRS depreciation is used where the depreciation rates in years 1, 2, 3, and 4 are 30%, 40%, 20%, and 10%, respectively? Selected Answer: 53600 Correct Answer: 59,200 Answer range +/- 118.4 (59081.6 - 59318.4)
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