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Precision Industries expects to have sales of $ 1 5 million. Costs other than depreciation are expected to be 7 0 % of sales, and

Precision Industries expects to have sales of $15 million. Costs other than depreciation are expected to be 70% of sales, and depreciation is expected to be $2.25 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Precision's federal-plus-state tax rate is 30% Precision has a debt interest payment due of $500,000. Set up an income statement. Suppose Congress changed the tax laws so that Precision's depreciation expenses doubled. No changes in operations occurred. Calculate Precision's expected net cash flow.

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