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QUESTION 4 A firm is considering a project that is forecasted to cost $100 initially. Annually the project will have operating costs of $5 per

QUESTION 4

  1. A firm is considering a project that is forecasted to cost $100 initially. Annually the project will have operating costs of $5 per year and revenues of $41.1 per year. The annual depreciation is expected to be $25 in years 1-4. Charges for depreciation will end after year four. Taxes are 30%. What is the operating cash flow in year five?

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