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QUESTION 3 2 points Save Answer XYZ operates indoor tracks. The firm is evaluating the Santa Fe project, which would involve opening a new indoor
QUESTION 3 2 points Save Answer 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 $169,000 and total costs of $78,800 if it pursues the Santa Fe project, and the firm would have total revenue of $146,000 and total costs of $73,200 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 $38,800 if the firm does not pursue the project. The tax rate is 44.00%. 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? $17,528.00 (plus or minus $1) $34,928.00 (plus or minus $1) $26,772.00 (plus or minus $1) $44,300.00 (plus or minus $1) None of the above is within $1 of the correct
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