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Whatcom Co. is evaluating a project which will generate sales of $50,000 each year with a production cost of $30,000. The project will cost $100,000

Whatcom Co. is evaluating a project which will generate sales of $50,000 each year with a production cost of $30,000. The project will cost $100,000 and be depreciated straight line to a zero book value over the 10 year life of the project. The applicable tax rate is 15 percent. What is the first year's operating cash flow for this project?

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