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VR Corporation has the opportunity to invest in a new project, the details of which are shown below. What is the Year 1 cash flow

VR Corporation has the opportunity to invest in a new project, the details of which are shown below.

What is the Year 1 cash flow for the project?

Sales revenues, each year

$42,500

Depreciation

$10,000

Other operating costs

$17,000

Interest expense

$4,000

Tax rate

35.0%

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