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The firm has projected a sales volume of 2,650,000 for the first year of a proposed expansion project. Costs normally run 60% of sales, or
The firm has projected a sales volume of 2,650,000 for the first year of a proposed expansion project. Costs normally run 60% of sales, or about 1,590,000 in this case. The depreciation expense will be 200,000, and the tax rate is 20%. Calculate the after-tax operating cash flow in the first year.
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