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Problem:

Kurt's Kabinets is looking at a project that will require $80,000 in fixed assets and another $20,000 in net working capital. The project is expected to produce sales of $138,000 with associated costs of $74,000. The project has a 4-year life. The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 34 percent.

Required:

Question: What is the operating cash flow for this project?

Note: Show all workings.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91175180

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