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You are considering the purchase of a machine with an initial outlay of $45,000 with a 5-year life. It is expected to generate sales of

You are considering the purchase of a machine with an initial outlay of $45,000 with a 5-year life. It is expected to generate sales of $58,000, operating costs excluding depreciation of $41,000, and interest expense of $3,000. 


What is the annual operating cash flow (year 1-5) if the tax rate is 40%? Firm uses straight-line depreciation method.

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