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You have been given the following information for a project you are evaluating. Equipment costs are expected to be $3,000,000. Revenues are expected to be
You have been given the following information for a project you are evaluating. Equipment costs are expected to be $3,000,000. Revenues are expected to be $1.5 million per year. Operating costs are expected to be 65% of revenues and fixed costs are expected to be $150,000 per year. Depreciation in year one is expected to be 25%. Tax rate is 20%. Calculate the year 1 operating cash flow.
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