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which XYZ operates indoor tracks. The firm is evaluating the Santa Fe project, which would involve opening a new indoor track in Santa Fe. During
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XYZ operates indoor tracks. The firm is evaluating the Santa Fe project, which would involve opening a new indoor track in Santa Fe. During year 1, XYZ would have total revenue of $161,000 and total costs of $78,000 if it pursues the Santa Fe project, and the firm would have total revenue of $152,000 and total costs of $71,700 if it does not pursue the Santa Fe project. Depreclation taken by the firm would be $77.700 if the firm pursues the project and $37,900 if the firm does not pursue the project. The tax rate is 41.60%. What is the relevant operating cash flow (OCF) for year 1 of the Santa Fe project that XYZ should use in its NPV analysis of the Santa Fe project? $30,666.40 (plus of minus $1 ) $27,96640 (plus or minus \$1) $18,13360 (plus of minus $1 ) \$46, 10000 (plus or minus \$1) None of the above is within $1 of the correct Step by Step Solution
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