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Sales revenues $10 million Operating costs 8 million Interest expense 1 million The company has a 25% tax rate, and its WACC is 14%. Write
Sales revenues $10 million Operating costs 8 million Interest expense 1 million The company has a 25% tax rate, and its WACC is 14%. Write out your answers completely. For example, 13 million should be entered as 13,000,000. a. What is the proiect's operating cash flow for the first year (t=1) ? Round your answer to the nearest dollar. $ The firm's OCF would now be \$ a. What would the depreciation expense be each year under each method? Enter your answers as positive values. Round your answers to the nearest dollar. b. Which depreciation method would produce the higher NPV? -SelectHow much hiaher would the NPV be under the preferred method? Do not round intermediate calculations. Round your answer to the nearest dollar. b. What are the project's annual cash flows in Years 1, 2, and 3 ? Do not round intermediate calculations. Round your answers to the nearest dollar. Year 1: $ Year 2: $ Year 3: $ C. If the WACC. is 10%, should the spectrometer be purchased
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