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KIMA KITCHEN is evaluatinf a project that would require an initial investment in equiptmenr of $120,000 and that is expected to last for 3 years.
KIMA KITCHEN is evaluatinf a project that would require an initial investment in equiptmenr of $120,000 and that is expected to last for 3 years. MACRS depreciation would be used where the depreciation rates in years 1,2,3 and 4 are 45%, 25% , 20% and 10% respectively. For each year of the project Kima kitchen expects revelant annual revenue associated with the project to be $75,000 and relevant annual costa associated with the project to be $31,000. The tax rate is 50 percent. what is ( X plus Y) if X is the relevant operating cash flow associatwd wirh the project expected in year 1 of the project and Y is the relevant operating cash flow associated wirh rbe project expected in year 3 of the project?
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