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Taylor United is considering overhauling its equipment to meet increased demand for its product. The cost of equipment overhaul is $4.05 million, plus $239,980.00 in
Taylor United is considering overhauling its equipment to meet increased demand for its product. The cost of equipment overhaul is $4.05 million, plus $239,980.00 in installation costs. The firm will straight-line depreciate the equipment to zero using a 5-year recovery period. Additional sales from the overhaul should amount to $218,571.00 per year, and additional operating expenses and other costs excluding depreciation will amount to 3500% of the add tional sales. The ? has an o nan ax ate of what s he operating cash flow for year 1 of this project
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