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Please do it in 10 minutes will upvote 2. XYZ operates indoor tracks. The firm is evaluating the Santa Fe project, which would involve opening

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2. XYZ operates indoor tracks. The firm is evaluating the Santa Fe project, which would involve opening a new indoor track in Santa Fe. During year 1, XYZ would have total revenue of $164,000 and total costs of $75,700 if it pursues the Santa Fe project, and the firm would have total revenue of $153,000 and total costs of $72,300 if it does not pursue the Santa Fe project. Depreciation taken by the firm would be $77,500 if the firm pursues the project and $36,300 if the firm does not pursue the project. The tax rate is 45.90%. What is the relevant operating cash flow (OCF) for year 1 of the Santa Fe project that XYZ should use in its NPV analysis of the Santa Fe project? 3

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