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Questions 18-20: Suppose you want to assumptions for this business: start a dry cleaning business. You project the following relevant . It will cost you

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Questions 18-20: Suppose you want to assumptions for this business: start a dry cleaning business. You project the following relevant . It will cost you $150,000 in investment The equipment will last 10 years and can be depreciated to zero on a nt to purchase the necessary equipment to start this business purchase straight-line basis: .You expect your . You ex .At the end iness to last 10 years and believe you can generate $100,000 in revenue per year costs will be $65,000 per year, not including depreciation will of the 10 years you believe the salvage value of your equipment wilM be $15,000 You believe the appropriate discount rate for this project is 15%. imple, partial, pro-forma income statement for this project can be summarized as Your folows In $ per year: Revenue Costs Depreciation EBIT Taxes Net Income 100,000 65,000 18) What is the annual operating cash flow (OCF) from the project? a) 10,000+100,00 b) +70,000

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