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Text Mom, Inc. is considering a new five-year expansion project that requires an initial fixed asset investment of $5,000,000. The fixed asset will be depreciated

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Text Mom, Inc. is considering a new five-year expansion project that requires an initial fixed asset investment of $5,000,000. The fixed asset will be depreciated straight-line to zero over the project's life, after which time it will be worthless. No bonus depreciation will be taken. The project is estimated to generate $4,000,000 in annual sales, with costs of $2,000,000. The tax rate is 24 percent. What is the annual operating cash flow for this project? A) 51.760.000 B) $2,000,000 C) $1.520.000 D) 5890.000 E) $760,000

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