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Johnson Manufacturing is trying to estimate the first-year operating cash flow for a proposed project on which it has collected the following information: Sales revenues
Johnson Manufacturing is trying to estimate the first-year operating cash flow for a proposed project on which it has collected the following information:
Johnsons financial staff has also determined that this project would cannibalize one of the firms other projects by $1.1 million of cash flow (before taxes) per year. Johnson has a 35 percent tax rate, and its WACC is 12 percent. Calculate the projects operating cash flow for Year 1.
A. $3,330,000 B. $2,225,000 C. $ 1,430,000 D. $2,145,000 |
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