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ABC Company has a proposed project that will generate sales of 284 units annually at a selling price of $298 each. The fixed costs are $6,914 and the variable costs per unit are $117. The project requires $24,187 of equipment that will be depreciated on a straight-line basis to a zero book value over the 4-year life of the project. That is, depreciation each year is $24,187/4. The salvage value of the fixed assets is $6,900 and the tax rate is 26 percent. What is the operating cash flow for year four?

Financial Management, Finance

  • Category:- Financial Management
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