Problema project will increase sales by 60000 and operating, Ask an Expert

Finance

Problem:

A project will increase sales by $60,000 and operating expenses by $51,000. The equipment will cost $40,000 and be depreciated using MACRS (5 year life). Interest expense is $500 per year. The company has a marginal tax rate of 35%.

Required:

Question 1: What is the operating cash flow of the project Yar 1?

Note: Please provide equation and explain comprehensively and give step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162584

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