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QUESTION 9 XYZ. is thinking about opening a new store. The new store would require an initial investment of $600,000 and is expected to be

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QUESTION 9 XYZ. is thinking about opening a new store. The new store would require an initial investment of $600,000 and is expected to be in operation for 3 years. MACRS depreciation would be used where the depreciation rates in years 1, 2, 3, and 4 a 33 33%. 44.44%, 14 82% and 7.41% respectively. For each year of the project, Auburn expects relevant revenue associated with the new store to be $450 000 and relevant costs cited with the new store to be $220,000. The tax rate is 40 percent. What is X if X equals (the operating cash flow (OCF) associated with the Tuscaloosa store expected in year 2 of the project) plus (the OCF associated with the Tuscaloosa store expected in year 3 of the project)? a $462,648 (plus or minus 5100) b. 5418,224 (plus or minus 5100) c. $388,912 (plus or minus $100) d. 5636,216 (plus or minus 5100) e. None of the above is within $100 of the correct

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