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Kima Kitchen is evaluating a project that would require an initial investment in equipment of $120.000 and that is expected to last for 3 years.
Kima Kitchen is evaluating a project that would require an initial investment in equipment 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 454.25%, 20% and 10%, respectively. For each year of the project Kima Kitchen expects relevant annual revenue associated with the project to be $95.000 and relevant annual costs associated with the project to be 551,000. The tax rate is 50 percent. What is plus ) if X is the relevant operating cash flow (OCF) associated with the project expected in year 1 of the project and is the relevant OCF associated with the project expected in year 3 of the project? 3.573,000 (plus or minus $100) 6.577.000 (plus or minus 5100) 583.000 (plus or minus 5100) d. 393.000 plus or minus 5100) e. None of the other alternatives is within $100 of the correct
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