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Please help and explain how to do this question Bad Company has a new 4-year project that will have annual sales of 8,500 units. The
Please help and explain how to do this question
Bad Company has a new 4-year project that will have annual sales of 8,500 units. The price per unit is $20.00 and the variable cost per unit is $7.75. The project will require fixed assets of $95,000, which will be depreciated on a 3-year MACRS schedule. The annual depreciation percentages are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. Fixed costs are $35,000 per year and the tax rate is 35 percent. What is the operating cash flow for Year 3? Multiple ChoiceStep by Step Solution
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