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Please show me how to solve Consider a project with the following information: Expected Units Sold in Year 1: 900 units Expected Sale Price in
Please show me how to solve
Consider a project with the following information:
Expected Units Sold in Year 1: 900 units
Expected Sale Price in Year 1: $50 per unit
Expected Operating Costs in Year 1: 40% of sales
Depreciation Rate in Year 1: 20%
Interest expense in Year 1: $4,000
Cost of Fixed Assets in Year 0: $50,000
Increase in Accounts Payable in Year 1: $3,000
Increase in Accounts Receivable in Year 1: $8000
Increase in Inventories in Year 1: $4,000
Tax rate: 35%
What is the Operating Cash Flow in Year 1?
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