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You are considering starting a new lactory producing small electric heaters. Each unit will sell at a price of $125. The production cost of each

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You are considering starting a new lactory producing small electric heaters. Each unit will sell at a price of $125. The production cost of each healer is $80. You are expecting to 5013800 units per year. This project has an economic Ite ot 8 years. The project requires an itivestment of $780000 in plants and equipment. This equipment will be depreciated to zero salvage value based on 7-yeat MACRS schedule. The depreciation fates from year 1 to 8 are 14.29%.24.49%,17.49%,12.49%,8.93%. 8.92%,8.93%. and 4.46 percent, respectively. The company will sell as old equipment for $130000. The old machine is fully depreclated. The required rate of roturn for the project is 11 percent, the working capital tequirement is 20 percent of the next year's sales revenue. The marginal corporate tax rate is 21 percent. At the termination of the project, the plant and equpment will be sold for an estimated value of $65000. Based on these assumptions, estimate the operating cash flows for the project. What is the operating cash flow in the last year? 288,745158497142,396149,717

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