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ntent/chrome/online/lessonViewer.aspx?header-true&idCourse-538748idUnit-&idlesson-8page-1BidWeb Lesson: Relevant Cash Flows for Capital Budgeting Introduction to Finance 2. A firm has the opportunity to invest in a start-up solar energy company,

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ntent/chrome/online/lessonViewer.aspx?header-true&idCourse-538748idUnit-&idlesson-8page-1BidWeb Lesson: Relevant Cash Flows for Capital Budgeting Introduction to Finance 2. A firm has the opportunity to invest in a start-up solar energy company, a new cell phone (a poimt) technology, or the latest in television screens. These options are best described as projects. O independent O mutually exclusive O replacement O scaled back 3. An expansion project will annually generate additional revenues of $2,500,000. It has fixed ( point) and variable costs totaling $1,250,000. It will increase depreciation costs by $620,000. The firm has a marginal tax rate of 34%, what is the projection for the firm's operating cash flow for this expansion project? o $2 14,200 $415,800 $630,000

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