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(Calculating free cash flows) Vandelay Industries is considering a new project with a 10-year life with the following cost and revenue data. This project will require an investment of $140,000 in new equipment. This new equipment will be depreciated down to zero over 10 years using the simplified straight-line method and has no salvage value. This new project will generate additional sales revenue of $132,000 while additional operating costs, excluding depreciation, will be $61,000. Vandelay's marginal tax rate is 31 percent. What is the project's free cash flow in year 1?

The project's free cash flow in year 1 is $ (Round to the nearest dollar.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92427520

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