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Winston Corp. manufactures widgets. The company is setting up a new 7-year project in New Jersey. The company expects that the project will generate
Winston Corp. manufactures widgets. The company is setting up a new 7-year project in New Jersey. The company expects that the project will generate annual sales of $430,000 and incur annual costs of $309,000. The initial investment in fixed assets will be $745,000, which will be depreciated straight line to zero. Winston feels that both sales and costs are accurate to +/-10 percent. Determine the annual operating cash flow (OCF) for the best-case scenario. Assume a tax rate of 34 percent.
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