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Martin Mining is considering a new investment that will last for six years. The project has projected sales of $1,557,000. Variable costs are 55 percent
Martin Mining is considering a new investment that will last for six years. The project has projected sales of $1,557,000. Variable costs are 55 percent of sales and fixed costs are $85,000; depreciation $91,000 per year. Prepare a pro forma income statement assuming a tax rate of 25 percent. Assume the project costs $1,500,000. What is projected net income? What is operating cash flow?
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