QUESTION 27 As the CFO of firm AAA, you are asked to estimate the cash flows. The equipment for this project will be used for the next four years. It will be worthless by the end of year 4. The depreciation rates are 33%, 45%, 15%, and 7% for Years 1 through 4. What is operating cash flow in the first year? (Hint: use 33% as the depreciation rate for year 1. OCF= (Sales Revenue - COGS - Depreciation)*(1-1) + Depreciation Equipment cost (depreciable basis) $65,000 Sales/year (constant) $60,000 Operating costs (excluding depreciation) $25,000 Tax rate 35.0% $30,258 $30,880 $34460 $36,138