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Volvo Trucks has introduced a new truck model that has the potential to produce $126,000 revenue each year. The direct costs of production are $42,000,
Volvo Trucks has introduced a new truck model that has the potential to produce $126,000 revenue each year. The direct costs of production are $42,000, and the annual fixed expenses of maintaining the truck factory are $16,000. The factory initially costs $1.05 million and is being depreciated using straight-line depreciation over 25 years for the tax purposes. Calculate the project's operating cash flows assuming the company's tax bracket is 25%. (Insert your response in dollars, not millions of dollars.) Operating cash flows
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