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Problem:

Mike is evaluating a project that will increase annual sales by 138000 and annual costs by 94000. The project will initially require 110000 in fixed assets that will be depreciated straight-line to a zero book value over the 4-year life of the project. The applicable tax rate is 32 percent.

Required:

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

Note: Provide support for your rationale.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162373

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